Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

VAT Small and Medium Enterprises Assurance Manual

From
HM Revenue & Customs
Updated
, see all updates

Check on registered particulars: transfer of a going concern

When a business, or part of a business, is transferred as a going concern, the assignment of its assets to the transferee can be treated as a non-supply, subject to the conditions set out in VTOGC- Transfer of a going concern and Notice 700/9 Transfer of a business as a going concern.

A serious revenue risk can arise if tax is erroneously charged on such a transfer. The transferee will claim this tax as input tax, whilst the transferor may fail to account for it as output tax. If this is the case you should assess the transferee.

Officers should review, at the first opportunity, the checks taken at registration. Look for the indicators laid out in V1-28 Registration. The registration progress sheet is a record of enquiries and checks made to validate the application. Checks should be made to confirm that notification was made at the correct time, and that each detail on the Form VAT1 is accurate.