RCB/30/12 HMRC's position following the decision of the Tax Tribunal in the case of Robinson Family Limited
Revenue & Customs Brief, Issue 30. 16 November 2012
Purpose of this Brief
The purpose of this Brief is to explain a change in HM Revenue & Customs' (HMRC's) position following the decision of the Tax Tribunal in the case of Robinson Family Limited ( UKFTT 360 (TC), TC02046).
This Brief is for traders who enter into property transactions (other than solely as an occupier), and their advisers.
To note the contents of this Brief.
When the assets of a business (or part of a business) are transferred as a going concern, subject to certain conditions no supply of those assets takes place for VAT purposes. For this to happen, the purchaser must have the intention of using those assets to carry on the same kind of business as the seller. This is equally the case where the business is that of property development or property rental, and the asset sold is the property, but it can sometimes be less clear when a business is being transferred in these situations.
HMRC has interpreted the law as meaning that, for there to be the transfer of a property rental or property development business as a going concern (“TOGC”), the interest in land being transferred must be the same interest as that used by the transferor in his business. It followed from this interpretation that, if what was transferred was less than the transferor's full interest in the