Transferring land and property as part of a TOGC

By Tolley
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The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Transferring land and property as part of a TOGC
  • Conditions
  • Summary of the main VAT treatment
  • Transfer of a property rental business
  • Mixed developments
  • Transfer of beneficial ownership
  • Robinson Family Ltd (RFL)
  • Surrendering a lease
  • TOGCs of new developments of dwellings, relevant residential and relevant charitable buildings

This document covers this in detail, along with the disapplication of the option to tax; transfer of property rental business, mixed properties, beneficial ownership, dwellings, relevant residential and charitable buildings; lease surrender; and retrospective adjustments.
 

This guidance note provides an overview of the main provisions regarding transfers of land and property as the transfer of a business as a going concern (TOGC). This note should be read in conjunction with the Overview of a transfer of a business as a going concern guidance note which provides an overview of the main TOGC provisions.

VTOGC6000; De Voil Indirect Tax Service V2.226 (subscription sensitive); Notice 700/9 

See also the Flowchart ― transferring land and property as part of a TOGC.

Businesses involved in a TOGC may also wish to use the TOGC ― transaction checklist to assist with ensuring that all relevant points are covered.

If the TOGC involves a partly exempt VAT group, please see the TOGCs and VAT groups guidance note.

Conditions

If land and property will be transferred as part of a TOGC, then the following conditions must be satisfied in addition to the conditions outlined in the Overview of a transfer of a business as a going concern guidance note in order for the land and buildings to be transferred without the requirement to charge VAT:

If the seller is transferring land and propertyWhere a valid option to tax has been exercised. Please see the Overview of the option to tax guidance note for more information
 A property that is less than three years old and the supply will be standard-rated

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