Commentary

V7.176 What is the transfer of a going concern?

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.176 What is the transfer of a going concern?

Part V7 Tax planning | Commentary

V7.176 What is the transfer of a going concern?

For a transfer of a going concern to exist, there must be the sale of the whole business, or a part of a business. A mere transfer of assets will not be regarded as a transfer of a going concern. If the business is not being transferred as a going concern, then normal VAT rules will apply, ie output tax must be charged on the supply, unless it is specifically zero-rated, exempt or outside the scope of VAT. See Examples 1 and 2 below.

Example 1

Mr Jones owns a jeweller's shop in

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