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

HMRC internal manual

VAT Transfer of a going concern

From
HM Revenue & Customs
Updated
, see all updates

Article 5 VAT (Special Provisions) Order 1995: Has there been the transfer of a business or just a sale of assets?: stock

The transfer of stock is often a fundamental part of the transfer of a business. If a business is transferred, all or a large part of the stock is usually sold to the purchaser of the business. If all the stock is sold to a single purchaser, the seller has nothing left with which to trade, which can indicate that he has sold his business. However, this will depend on the kind of business carried on and the normal trading arrangements. The sale of a small proportion of stock is less likely to indicate a TOGC, unless the effect is to put the purchaser in possession of an identifiable business.