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HMRC internal manual

VAT Transfer of a going concern

HM Revenue & Customs
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Article 5 VAT (Special Provisions) Order 1995: a person (the seller)

Article 5 refers to “supplies by a person”. It does not say “taxable person”. It is quite clear that it was not intended to mean “ taxable person” as the article goes on to say at (a)(ii):

“where in a case in which the transferor is a taxable person…”

Thus it envisages situations where the seller is not a taxable person, for example trading below the registration limit or making wholly exempt supplies. A TOGC is possible in both these circumstances. VTOGC4500 discusses the TOGC of exempt activities.