| Commentary

241 The buyer

| Commentary

241 The buyer

The buyer will be keen to have a high price allocated to plant and machinery under the sale contract in order to maximise his claim for capital allowances on the acquisition1, and also a high price allocated to stock in order to minimise his tax liability on resale. He will also wish to make sure that he is aware of the VAT history of the business and is able to avoid HM Revenue and Customs deciding that the transfer itself is a chargeable supply for VAT purposes2.

Despite all these considerations however, the

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