VATDREG08600 - Cancellation in particular cases: transfer of a going concern (TOGC)

Where you have reason to believe there has been a TOGC of a business by the person deregistering, you should be aware that the transferee may be liable to register for VAT.

Prior to 1 September 2007, the business records of a business transferred as a going concern were required to be transferred to the purchaser of the business. However the seller could apply to HMRC for permission to keep the records.

Changes have been made to section 49 of the VAT Act 1994, and regulation 6 of the VAT Regulations 1995 in respect of contracts entered into on or after 1 September 2007.

From 1 September 2007, the seller of a business as a TOGC retains the records. However, where the purchaser takes on the seller’s VAT number, the seller is required to transfer the records to the purchaser, unless the seller needs to retain the records, in which case he may apply to HMRC for permission to do so.

Further guidance on this and the other registration aspects of a TOGC can be found in VTOGC - VAT Transfer of a going concern.