What happens to stock and business assets when I stop trading?

Stock and assets still need to be accounted for when trading stops. Selling them, keeping them personally or transferring them can have different tax consequences. VAT and capital-allowance adjustments may also apply, so prepare a closing list before disposing of anything.

These answers provide general information, not advice tailored to your circumstances. Rules can change and exceptions may apply — speak to the CASS team before making a tax, accounting or financial decision.

List what remains

Include stock, equipment, vehicles and other assets, with purchase details, condition and any previous tax relief claimed. Record what is sold, scrapped, transferred or kept.

Personal use is not a free disposal

Keeping something yourself can require a value to be brought into the tax calculation. The treatment depends on the asset, business structure and accounting basis.

Check VAT separately

If VAT registration is cancelled, VAT may be due on certain assets remaining where VAT was deductible. Conditions and limits apply, so do not assume cancellation removes every liability.

Agree the closing treatment

Give CASS the asset list before transfers take place. Company assets also belong to the company, so taking them personally needs its own assessment.