Commentary

V7.175 Transfer of a going concern—introduction

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.175 Transfer of a going concern—introduction

Part V7 Tax planning | Commentary

Identifying a transfer of a going concern ('TOGC')

V7.175 Transfer of a going concern—introduction

There is a widely used phrase in accounting circles: 'If in doubt, charge VAT'.

However, there is at least one situation where this phrase should not be used – that is, concerning the transfer of a business (for a consideration) as a going concern. Basically, this is because HMRC has the power in certain circumstances to disallow any input tax claimed by the buyer, even if he holds a proper tax invoice and the seller has accounted for output tax on the amount charged.

The TOGC rules

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