If a B2C licence holder has not gone live yet, would the preparation of the AUPs still be required?

Yes, in such case, it wouldstill be required. The MGA is already allowing an exemption from the requirement to prepare the AUPs for the first financial year during which a licence is granted, hence, no further exemptions shall be permitted from the second financial year onwards, should a licensee still remain non-operational until that time.