The following Tax guidance note Produced in partnership with Martin Scammell provides comprehensive and up to date legal information covering:
This Practice Note is about the issues that arise on a transfer of a going concern involving land and buildings.
A transfer of a going concern (TOGC) has two distinct meanings for VAT purposes:
an ordinary meaning, referring simply to the disposal of an ongoing business—this is relevant, in particular, to the VAT registration position of the buyer, and
a transfer that is treated as a non-supply for VAT purposes, so that in particular no VAT is due on it
Both are often referred to as a TOGC, but for the remainder of this Practice Note this term is reserved for the second of these meanings, to refer to a non-supply.
There are three main ways in which property might be the subject of, or included in, a TOGC:
a transfer of a non-property business where property is simply among the assets being transferred—an example might be the sale of a retail business or restaurant
a transfer of an investment property—a business of property letting, or
a transfer of a property development activity, such as the sale of an uncompleted development
This Practice Note is about specific issues that arise where, and to the extent that, the transfer involves land and buildings. These issues arise both from the relevant VAT law and from the nature of property and property transactions.
The property-specific issues should be considered
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234