HMRC internal manual

VAT Registration

VATREG29500 - Transfers of going concerns (TOGC): exception to and exemption from registration

Exception to registration

This is where the person can show that his future supplies will be below the deregistration threshold for the particular type of supply. This means that someone who has a liability to register at the time of a TOGC may discharge that liability by satisfying us that their future supplies in the year then beginning will be below the deregistration or relevant threshold.

Exemption from registration

Exemption from registration can be granted where all, or the majority of, the supplies are zero-rated and the trader would be in a permanent repayment situation. The normal rules about exemption apply. Exemption can also apply to registration under Schedule 3 or 3A.