VATREG43100 - The effects of death, insolvency and incapacity on registration: death of a partner: use of Regulation 9
Where it seems probable that the business of the partnership will continue to be carried on by a partnership for the foreseeable future, you should obtain an amended VAT 2 and exercise our discretion under the VAT Act 1994, section 45(1) to allow the partnership to continue as if no changes had occurred.
Regulation 9 need only really be used with partnerships in circumstances where the death of a partner reduces the partnership to a sole surviving partner. Even under these circumstances, it should only be used where there could be problems with allowing the registration to continue unchanged (VAT 68) or with re-registering the business.