Commentary

V3.114 Neither supplies of goods nor supplies of services

Part V3 Supplies, acquisitions and imports

V3.114 Neither supplies of goods nor supplies of services

V3.114 Neither supplies of goods nor supplies of services

The transactions set out below are treated neither as supplies of goods nor as supplies of services and are therefore outside the scope of VAT.

Supplies of neither goods nor services—repossessed goods

Certain goods repossessed under a finance agreement or acquired in settlement of an insurance claim are outside the scope of VAT when sold1. The detailed provisions are described in V3.117.

Supplies of neither goods nor services—assets of a business transferred as a going concern

The sale of assets is outside the scope of VAT, provided certain conditions are met, where a business or part of a business is transferred as a going concern2. The detailed provisions are described in V2.226.

Supplies of neither goods nor services—goods comprising a hire purchase or conditional sale agreement

Where the owner of the goods assigns his rights and interest under such an agreement and the goods comprised therein to a bank or other financial institution, the transaction is outside the scope of VAT3.

Supplies of neither goods nor services—supplies between group members

Where two or more bodies corporate4 are registered as a VAT group, any supply of goods or services by one member of the group to another member of the group is 'disregarded' for the purposes of VAT and is thereby outside the scope thereof5.

However, in specified circumstances in relation to supplies made on or after 26 November 1996, the supplies are not disregarded6. In addition, HMRC has powers to direct that a supply made between

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