Introduction: The Law
In basic terms the law provides for the supply of all or some of the assets of a business,or part of a business, to be treated as neither a supply of goods nor a supply of servicesif certain conditions are met. In these circumstances, the supply is outside the scope ofVAT and therefore relieved from tax.
The law refers to the transferor (the person selling the business) and the transferee(the person buying the business). To avoid possible confusion this book refers to them asthe seller and the purchaser respectively.