The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides an overview of the transfer of a business as a going concern (TOGC).
In-depth commentary on the legislation and case law can be found in De Voil Indirect Tax Service V2.226.
The default position for the sale of business assets by a business which is registered for VAT or required to be registered for VAT (see the Overview ― registering for VAT guidance note) is that it will be subject to VAT at the appropriate rate for the assets in question. However, the sale of assets as part of a business which is a ‘going concern’ will be treated as neither a supply of goods nor a supply of services for VAT purposes provided certain conditions are met. This means that a TOGC is outside the scope of VAT and no VAT is charged.
The TOGC treatment is mandatory which means that if the relevant conditions are met, t
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