Commentary

246 VAT implications of selling to a connected company

BUSINESSES vol 4(2) start-up, sale and purchase
| Commentary

246 VAT implications of selling to a connected company

| Commentary

246 VAT implications of selling to a connected company

Where assets are sold to a connected person the seller must consider whether the sale amounts to a transfer of a going concern, in which case no VAT will be payable, and if it does not, whether a market value will be imposed for VAT purposes under the Value Added Tax Act 1994 Section 19 and Schedule 6 paragraph 1. Such a market value will be imposed if the buyer will not be entitled to recover all the VAT on the acquisition of such assets, either because it will use

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