VTOGC6445 - Land and Property: Property rental business: tenant not in occupation

Once a lease has been granted to a tenant the business can be said to be in operation. Consequently where a formal lease has been granted to a tenant but he has not yet occupied the building, the sale of the freehold would still be the transfer of a property rental business and a TOGC for VAT purposes. Even where the tenants have not actually signed the lease provided that there is a signed agreement for lease or a contract for a lease that is also transferred and evidenced in the contract, the transfer could be a TOGC.