Commentary

V7.183 Transfer of a going concern—change in legal entity

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.183 Transfer of a going concern—change in legal entity

Part V7 Tax planning | Commentary

V7.183 Transfer of a going concern—change in legal entity

A common situation that occurs in business is where a sole trader decides to expand his activities by taking on a partner. Equally, an existing partnership may be expanded to include an extra partner and, very common in recent times, a sole trader or partnership business may incorporate and become a limited company.

As far as VAT is concerned, a change in legal entity (ie sole trader business becoming a partnership) represents the transfer of a going concern. However, the addition of a new partner to an existing partnership does not

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