Art of VAT

A VAT-registered company receives royalty payments and commissions from films. The company is partially exempt because it also receives rent from a residential property.

The company is only just above the registration threshold so the owner is considering whether to de-register when turnover falls below it. Should I include the rental income in the figures?

A complication is fine artwork owned by the company as investments. In the past when sold the VAT margin scheme for works of art was used to account for VAT.

If the company did deregister would it have to pay tax on its final VAT return on the works of art still owned? If not what effect would this have on future sales?

Would the company then need to re-register? One painting is worth £150 000 and the other five are worth about £30 000 each. The plan is to...