VRS3550 | Fundamentals of the retail schemes: Death, bankruptcy or incapacity of a retailer
From HM Revenue & Customs · VAT Retail schemes guidance
Where a retailer dies, becomes bankrupt or is otherwise incapacitated, the person who carries on the business until matters are resolved can be treated as a taxable person in place of the previous registered business (see VATREG42000). In these circumstances, the person who carries on the business must continue to operate the same retail scheme.