VATDREG08600 - Cancellation in particular cases: transfer of a going concern (TOGC)
If you have reason to believe that a Transfer of a Going Concern (TOGC) has occurred in connection with a deregistering business, be aware that the transferee (buyer) may be liable to register for VAT.
Business Records and TOGC
Under Section 49 of the VAT Act 1994 and Regulation 6 of the VAT Regulations
1995 the seller must transfer the records to the purchaser if the purchaser
adopts the seller’s VAT registration number.
Disclosure of Information by
HMRC
If the purchaser is unable to obtain the necessary records from the seller,
HMRC may disclose relevant information it holds to help the purchaser meet
their VAT responsibilities. In such cases:
• HMRC will notify the seller of its intention to disclose the information.
• This provides the seller an opportunity to raise any confidentiality
concerns.
For further guidance on TOGC and
related VAT registration matters, refer to VTOGC - VAT Transfer of a ongoing concern