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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: Has there been the transfer of a business or just a sale of assets?: staff

If the new business takes over the contracts of existing staff this will suggest a TOGC. However, even if the staff have been made redundant by the seller if they have been re-employed by the purchaser, this supports a TOGC. Various employment laws, in particular the Transfer of Undertakings - Protection of Employees Act (TUPE), exist to protect staff involved in take over situations. The interaction between TUPE and the TOGC provisions has not yet been addressed by VAT tribunals.