Commentary

V3.246 Business transferred to member of a group

Part V3 Supplies, acquisitions and imports

V3.246 Business transferred to member of a group

V3.246 Business transferred to member of a group

The charge to tax

The representative member1 of a group of companies2 is treated as making a supply of 'chargeable assets' in the course or furtherance of its business3 where4:

  1.  

    •     a business or part of a business carried on by a taxable person is transferred as a going concern to a body corporate included in a group registration

  2.  

    •     on the transfer to the body corporate, chargeable assets are transferred, and

  3.  

    •     the supply of the assets transferred is outside the scope of VAT5

This provision was introduced as an anti-avoidance measure

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