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Application of the transfer of a going concern rules

29 January 2020 / Edd Thompson
Issue: 4729 / Categories: Comment & Analysis
TOGC ahead!

Key points

  • A business sale if treated as a transfer of a going concern is outside the scope of VAT.
  • Examples of when the transfer of a going concern provisions might apply in a business context.
  • HMRC’s VAT Notice 700/9 has a useful list of the conditions for a TOGC.
  • Problems may arise when standard-rated land forms part of the transfer.
  • Generally the seller’s costs are treated as general business overheads.
  • VAT will be recoverable by the purchaser on costs if the assets are used to make taxable supplies.


A topic tested quite frequently in the Association of Taxation Technicians paper 6 (VAT) examination is that of a business being transferred as a going concern commonly referred to as a TOGC. The subject...

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