VAT due on ex-lease assets on de-registration?

Is VAT due as a 'deemed supply' on formerly leased assets on de-registration?

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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.

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paddle steamer
By DJKL
23rd Aug 2017 15:31

Was vat charged on the nominal purchase price when acquired?

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Replying to DJKL:
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By MSD1968
24th Aug 2017 13:10

Thank you for the reply.

It was an additional month's lease payment which would have included VAT.

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