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HMRC internal manual

Debt Management and Banking Manual

HM Revenue & Customs
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Debt and return pursuit - Landfill Tax (LT): transfer of a going concern

Regulation 7 (3) of the Landfill Tax Regulations 1996, provides:

“Where the transferee of a business has been registered under paragraph (1) above with the registration number previously allocated to the transferor -

(a) any liability of the transferor existing at the date of the transfer to make a return or account for or pay tax under Part III of these Regulations shall become the liability of the transferee;”

The references to paragraph (1) are to the requirements of transfer of a going concern, which are:

  • the existing business must deregister following the transfer
  • the new owner must carry on the business under the old owner’s LT registration number and
  • both the former owner and the new owner must agree to transfer of liability on form LT 68.

If the requirements for TOGC are not met there is no transfer of liability, and the former owner remains liable for the debts he incurred (see X-55 Landfill tax).