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HMRC internal manual

VAT Transfer of a going concern

Transfers and VAT Groups: Transfers made by a VAT group to a person outside the group

Note: This advice supersedes that in Section 4 of Public Notice 700/9 Transfer of a business as a going concern dated 6 December 2012. This advice reflects that given in Revenue and Customs Brief 11/2016.

The formation of a VAT group creates a single person for VAT purposes and as such any supply by a member of a VAT group is deemed to be made by the representative member of the group. This was confirmed in the Kingfisher case (QB[1994] STC 63). Therefore any assets transferred by a group member as part of the transfer of a going concern are deemed to be transferred by the representative member.

Supplies made between members of a group are disregarded for the purposes of VAT. This does not mean that the members of a group are not businesses when they make supplies to each other. The transfer of a business or part of a business capable of separate operation outside a VAT group is subject to the same TOGC rules as between sellers and purchasers who are not in VAT groups.