TOGC ― land and property

Produced by Tolley

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • TOGC ― land and property
  • What are the rules when transferring standard-rated land as part of a TOGC?
  • What kinds of land and buildings are affected by these conditions?
  • What are the additional conditions?
  • How do the TOGC rules apply to property businesses?
  • Common property transfers
  • Partially let property
  • Seller retains an interest in the property
  • Transfer of a number of buildings or sites
  • Transfer to a nominee for a named beneficial owner
  • More...

TOGC ― land and property

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.

This guidance note looks at land and property issues associated with TOGCs, specifically:

  1. the rules that apply to ‘standard-rated’ land and buildings transferred as part of a TOGC

  2. property businesses

For an overview of TOGCs more broadly, see the TOGC ― overview guidance note.

In-depth commentary on the legislation and case law can be found in De Voil Indirect Tax Service V2.226.

What are the rules when transferring standard-rated land as part of a TOGC?

Additional conditions apply to certain land and buildings transferred as part of a TOGC. If these conditions aren’t satisfied, then the land and buildings will not be included within the TOGC and instead VAT will need to be charged on the supply of land and buildings. It should be emphasised that this does not affect the rest of the transfer which may qualify for the TOGC treatment provided it meets the conditions described in the TOGC ― conditions guidance note.

To establish if a transfer of land and property must be treated as a TOGC see our interactive flowchart.. Alternatively, for a static pdf version, see the Flowchart ― transferring land and property as part of a TOGC.

What kinds of land and buildings are affected by these conditions?

The rules affect land and buildings which would normally be taxable if they were supplied, namely:

  1. the freehold in certain new or partly completed buildings which would be standard-rated under the provisions set out in the Supplies liable to VAT at the standard rate guidance note

  2. the

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