.png)
.png)
A recent decision of the Upper Tribunal considers the nature of a transfer of a going concern.
KEY POINTS
- TOGC treatment is available when a business is transferred and the purchaser intends to continue exploiting the assets transferred.
- A business is carried on when it provides goods or services internally that form an integral element of and directly contribute to external supplies.
- Fiscal neutrality requires that VAT groups be treated in the same way as a business organised in divisions within the same legal entity. This has wider repercussions.
- Transactions or divisional recharges point to the economic substance of a business being conducted not the label of external supplies.
- There may be opportunities to recover any sunk tax costs of VAT and stamp duty land tax.
Have you or a client recently bought or sold a business that carried VAT on...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
