VAT TOGC clause—property sale contract
VAT TOGC clause—property sale contract

The following Tax guidance note provides comprehensive and up to date legal information covering:

  • VAT TOGC clause—property sale contract
  • Transfer of a going concern

Transfer of a going concern

  1. 1

    The Seller and the Buyer intend that the sale and transfer of the Property in accordance with the terms of this Agreement will constitute the transfer of a business or part of a business as a going concern pursuant to section 49(1) of the Value Added Tax Act 1994 (VATA 1994) and article 5 of the Value Added Tax (Special Provisions) Order 1995, SI 1995/1268, so that the transfer of the Property is properly regarded as neither a supply of goods nor a supply of services for the purposes of VAT.

  2. 2

    1. The Seller warrants and undertakes that:

    2. 2.1

      it, or the representative member of the VAT group to which the Seller belongs is duly registered for the purposes of VAT with registration number [insert registration number] and it will not cause or permit such registration to be cancelled on or before Completion;

    3. 2.2

      it, or the representative member of the VAT group to which the Seller belongs, has made a valid option to tax in relation to the Property pursuant to VATA 1994, Sch 10 or the Property is a new or uncompleted freehold commercial building or civil engineering work to which