Ensure that a business is continued post-sale to treat its disposal as a TOGC for VAT purposes

A transaction that is treated as the transfer of a going concern (TOGC) is outside the scope of VAT, so there is no VAT on the consideration for the transaction. The transfer of property that consists of a letting business...

Care required in treating a business transfer with leases as a TOGC

A recent CJEU case from Romanian concerning the transfer of a restaurant premises where the transferee continued the restaurant business, may have relevance for the way TOGC’s (transfers of a going concern) are treated for VAT in the UK where...

VAT – transfer of a business as a going concern – all tests must be met

An adverse decision of the Tax Tribunal leaves a company with an unexpected £1m VAT bill on the sale of its business.  The case is a salutary illustration of VAT complexity on what at first sight may appear to be...