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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: What is a going concern?: profitability

The expression “a going concern” is commonly used to describe a business whichis commercially viable. This is NOT the way in which tribunals have interpreted the term for the purposes of the TOGC provisions. Their view is that the term refers to a business which is live or operating. A business which is in financial difficulties or even inliquidation, receivership or bankruptcy can be a going concern. This principle was confirmed in Dearwood (STC 327/1987) where the High Court found that a dying business, in liquidation was nevertheless transferred as a going concern.