This guidance note provides an overview of the main VAT treatment regarding the transfer of business assets as a going concern. This note should be read by a business or its adviser if they are involved in the disposal of business assets.
Please see the Transferring land and property as part of a TOGC guidance note if the transfer involves land and property.
If the transfer of a business as a going concern (TOGC) provisions are satisfied, the transfer of all or part of the business assets will be disregarded for VAT purposes and no VAT can be charged on the value of the assets transferred. Businesses are required to treat the transfer as a TOGC if they meet the conditions outlined below.
This note could be used in conjunction with Flowchart - must the transfer be treated as a TOGC? and TOGC - transaction checklist.
Businesses need to be aware that they are legally required to use the TOGC provisions if they meet the conditions outlined below. Therefore, it is essential that the business or its advisers ascertain as soon as possible whether the transfer of the trade and assets should