Commentary

V7.188 Transfer of a going concern—planning points to consider

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.188 Transfer of a going concern—planning points to consider

Part V7 Tax planning | Commentary

V7.188 Transfer of a going concern—planning points to consider

The following points should be given consideration.

  1.  

    •     When acting for the buyer of a business, ensure that VAT is not incorrectly charged by the vendor – if a transfer of a going concern arrangement is evident, then HMRC has the power to disallow any input tax claimed by the buyer, even if he holds a proper tax invoice and has paid the VAT to the seller in good faith. Remember – the transfer of a going concern rules are compulsory – it is not possible to choose to 'opt out'

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