The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This guidance note looks at a number of issues associated with transfers of going concerns (TOGCs), specifically:
the capital goods scheme (CGS)
VAT registration entitlements / obligations
transferring VAT records
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.
The CGS is covered generally in the Introduction to the capital goods scheme guidance note. Broadly, it provides that for certain ‘capital items’, it’s necessary to monitor ‘use’ over a period of time. To the extent that the use of the capital items changes during that period, it will be necessary to make adjustments to VAT recovery (CGS adjustments).
If a capital item is transferred as part of a TOGC, the new owner will be required to take over the CGS adjustments for any remaining intervals. Purchasers therefore must confirm with the seller whether any of the items are capital items for the purposes of the CGS. If this is the case, the seller must provide the purchaser with details of adjustments undertaken to date.
The detailed provisions are described in the Capital goods scheme ― intervals and adjustments guidance note.
There may be VAT registration implications for both the buyer and seller arising out of a TOGC. Registration is covered generally in the VAT registration
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
Class 2 and Class 4 NIC are payable by self-employed earners and partners in a partnership. This guidance note considers Class 2 contributions. For Class 4 contributions, see the Class 4 national insurance contributions guidance note.Class 2 NIC arise where a self-employed individual has income
This guidance note explains the general rules surrounding the availability of indexation allowance on the disposal of company assets and provides information on the rebasing rules for assets held on 31 March 1982. For an overview of the general position regarding company disposals, please refer to
The married couple’s allowance (MCA) is only available if one of the two spouses or civil partners was born before 6 April 1935. This means that one member of the couple must be at least 87 years old on 5 April 2022 to qualify for an allowance in the 2021/22 tax year.There is a distinction in the
This guidance note provides an overview of the basic principles of inheritance tax, when it is charged and how it is calculated. It contains links and references to other parts of the module where more details can be found.Transfers of valueInheritance tax is based on the concept of a transfer of