Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Business Income Manual

From
HM Revenue & Customs
Updated
, see all updates

Value Added Tax: transfer as a going concern

S49 Value Added Tax Act 1994

Where a business carried on by a ’taxable person’ is transferred to another person as a going concern, the transferee is treated as having carried on the business both before and after the transfer, and taxable supplies by the transferor are treated accordingly. There is, for example, no VAT chargeable on the sale of stock in trade on the transfer. This situation should not give rise to any special problems as regards computations of trade profits.