A client would like to de-register for VAT. On hand, he has some fixed assets that were acquired from the finance company for a nominal sum at the end of operating leases. VAT was reclaimed on the operating lease payments. Assuming that the market value of the assets (including some stock) exceeds £5,000 (excl. VAT), does he have to account for output tax on the 'deemed supply'? If the formerly leased assets were excluded, the total VAT due would be less than £1,000 and could be ignored.
Thanks in advance for your help.