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HMRC internal manual

VAT Registration

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HM Revenue & Customs
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Registration in respect of relevant supplies: definition of predecessor

Schedule 3A, paragraph 9(2) defines a predecessor:

9—

(2) In relation to any goods, a person is the predecessor of another for the purposes of this paragraph if—

(a) that other person is a person to whom he has transferred assets of his business by a transfer of that business, or part of it, as a going concern;

(b) those assets consisted of or included those goods; and

(c) the transfer of the assets is one falling by virtue of an order under section 5(3) (or under an enactment re-enacted in section 5(3)) to be treated as neither a supply of goods nor a supply of services;

and the reference in this paragraph to a person’s predecessor includes references to the predecessors of his predecessor through any number of transfers. 

A predecessor is a person who transfers goods to another person under the provision which allows relief from VAT on the transfer of a business, or part of a business, as a going concern.

A predecessor can also be a previous transferor, under the provisions, who has recovered VAT on the transferred goods. The goods transferred may be the actual goods that are supplied, or something incorporated in them.