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HMRC internal manual

VAT Transfer of a going concern

From
HM Revenue & Customs
Updated
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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?: advertisements

Pre sale

As indicated in the extract from Edward James Caunt (MAN/83/160) above, the way in which a sale is advertised is an indication of the vendor’s intentions. However, it is not conclusive - the vendor may originally intend to sell a going concern, but change his mind if he can get more for the assets sold separately or circumstances change.

Post sale

It may be useful to look at any advertisements or other documents issued announcing the purchase. Phrases such as “Under new management” will indicate the same type of business is being carried on and there has been a TOGC.