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Global > United Kingdom >  Services > Tax > Budget 2007 > Transfers of a going concern
 

 

Transfers of a going concern

Currently when a business is acquired as a going concern for VAT purposes, the seller has an obligation to transfer the VAT records to the purchaser. However, the seller can apply to HMRC for a direction to retain its records.

The changes mean that the seller would automatically retain its records and would only be required to pass on certain information, as defined by law, to the buyer. The only circumstances under which records would be required to be transferred to the purchaser would be if the purchaser were to retain the seller’s VAT number.

The changes will have effect from 1 September 2007.
 

Our view
This proposal removes an unnecessary piece of bureaucracy and replicates what many businesses have been doing in practice for a number of years.
 
   

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