VATREG39150 - Registration in respect of relevant supplies: definition of a relevant supply
For the purposes of this section, the definition of relevant supply can be found in the VAT Act 1994, Schedule 3A, Paragraph 9(1):
9—
(1) For the purposes of this Schedule a supply of goods is a relevant supply where—
(a) the supply is a taxable supply;
(b) the goods are assets of the business in the course or furtherance of which they are supplied; and
(c) the person by whom they are supplied, or a predecessor of his, has received or claimed, or is intending to claim, a repayment of VAT on the supply to him, or the importation by him, of the goods or of anything comprised in them.
Normally, supplies of capital assets are disregarded when calculating turnover and the liability to register. This is not the case where they form a relevant supply.