Neil Warren considers some practical issues with the transfer of a going concern rules that can often produce difficult challenges for advisers
There are probably few subjects in the world of VAT that cause as many headaches as the transfer of a going concern (TOGC) rules. Is a business being sold or just individual assets? And if a business is being sold, do the buyers and sellers both meet the necessary conditions to avoid a VAT charge; i.e. is the supply outside the scope of VAT as a supply of neither goods nor services?
In this article, I will share some practical quirks of the TOGC rules and highlight various pitfalls that it is important to consider.
Business or assets?