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HMRC internal manual

VAT Transfer of a going concern

Land and Property: Property rental business: sale of a new building

Where a property developer builds a building and then allows someone to occupy it on a temporary basis (without any right to occupy after any proposed sale) or the property is being actively marketed, then any transfer of the property is not covered by the TOGC provisions and is liable to tax in the normal way. This is because no rental property business has actually been carried on and there is therefore no business to be transferred. It is the sale of a new building.