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HMRC internal manual

Debt Management and Banking Manual

HM Revenue & Customs
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Debt and return pursuit: Climate Change Levy: transfer of a going concern

Regulation 59 (2)(a) of the Climate Change Levy (General) Regulations 2001, provides:

“Should the Commissioners cancel the registration of the transferor and register the transferee in his place under paragraph (1) 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 CCL shall become the liability of the transferee;”  

The references to paragraph (1) are to the requirements for 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 CCL registration number; and
  • both the former owner and the new owner must agree to transfer of liability on form CCL 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.