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HMRC internal manual

Debt Management and Banking Manual

Debt and return pursuit: Environmental Taxes: Aggregate Levy (AL): Transfer of a going concern

Regulation 37 (2) of the Aggregates Levy (General) Regulations 2002, provides:

“Should the Commissioners cancel the registration of the transferor and register the transferee in his place under paragraph (1) above then, in order to secure continuity in the application of the Act-
(a) any liability of the transferor existing at the date of the transfer to make a return or account for or pay AL shall become the liability of the transferee;”  

The requirements for a transfer of a going concern (TOGC) (paragraph (1) above) are:

  • the existing business must deregister following the transfer
  • the new owner must carry on the business under the previous owner’s AL registration number and
  • both the former owner (the transferor) and the new owner (the transferee) must agree to transfer of liability on Form AL 68.

If the requirements for TOGC are not met there is no transfer of liability, and theformer owner remains liable for the debts he incurred.