Commentary

V7.180 Transfer of a going concern—input tax

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.180 Transfer of a going concern—input tax

Part V7 Tax planning | Commentary

V7.180 Transfer of a going concern—input tax

Although the sale of a business as a going concern is not regarded as a supply, input tax can still be recovered on the related costs of the sale (eg solicitors' fees) as long as the business in question was only making taxable supplies, ie able to fully recover its input tax. If the business was partly exempt, then the costs would be classed as a general overhead item and input tax apportioned according to its partial exemption method.

Note – if part of a business is being sold, then input tax claimed on

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial