Asset sales

In an asset sale the buyer purchases only those assets and assumes only those liabilities it wishes to acquire:

1. •

   sometimes an asset sale is the sale of an entire business (ie all the assets that form part of, and are used in, that business) or part of a business, but

2. •

   sometimes it is just a sale of an asset or a collection of assets

In this Overview:

1. •

   it is assumed that the parties to a sale are unconnected third parties acting on arm's length terms

2. •

   CGT means capital gains tax and corporation tax on chargeable gains

3. •

   TOGC means a transfer of a going concern for VAT purposes, and

4. •

   TUPE Regulations 2006 means the Transfer of Undertakings (Protection of Employment) Regulations 2006, SI 2006/246