No change

Taking over a business as a going concern

The taxpayer entered into a lease to rent the premises of the Bell Rock fish and chip shop (takeaway and restaurant) from 10 July 2015.

HMRC said he had taken over a going concern and should be registered for VAT from 10 July 2015. The previous owner had exceeded the registration threshold so the taxpayer was liable to register for VAT from his first day of trading.

The taxpayer argued that he had not taken over a business as a going concern because his dealings were with the landlord not the previous owner. He considered that he had become to liable to register from 1 October 2015.

The First-tier Tribunal found that the taxpayer had used the same name premises and equipment as the previous proprietor. The goodwill attached to the business. It was therefore reasonable for HMRC to decide there had...