![68047](https://www.taxation.co.uk/images/default-source/woodwing/68047.png?sfvrsn=cfe4bea2_2)
Key points
- Asset purchase agreements are VAT-free in the case of a transfer of going concern (TOGC) where the assets of a business are being sold but there are some requirements to satisfy.
- One requirement is that the purchaser has to continue the same kind of business as the vendor – but the business activity must be precisely determined.
- A consecutive transfer by the purchaser also prevents continuation of the business invalidating the TOGC so it is important that things remain the same for a while.
- Given recent events one must also think about whether the business being transferred as a TOGC is actually a going concern.
- The purchaser will need to be VAT-registered only if the vendor is VAT-registered but if there is property among the assets special rules apply where property interests are transferred.
Yesterday I went down to Dover because I...
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