A business registered for CCL becomes liable to deregister when they cease to make or intend to make, (whether before or after being registered for the purposes of the levy) or intend to have made to them, taxable supplies for which they are liable to account. The registered trader’s effective date of deregistration is the date on which the business stops making taxable supplies.
The legal basis for this is contained within the Finance Act 2000, Schedule 6, paragraphs 57(1) and 58(1) which states:
Notification of loss or prospective loss of registrability
57 (1) Where a person who has become liable to give a notification by virtue of paragraph 55 ceases (whether before or after being registered for the purposes of the levy) to intend to make, or to intend to have made to him, taxable supplies in respect of which (if made) he would be the person liable to account for the levy charged, he shall notify the Commissioners of that fact.
58 (1) If the Commissioners are satisfied that a registered person
they may cancel his registration with effect from such time after he last made, or had made to him, taxable supplies as appears to them to be appropriate