Transfer of a business as a going concern (UK VAT)
For VAT, a transfer of a business or an independently operable part as a going concern can be treated as neither a supply of goods nor services when the statutory conditions are met. These include a going concern and the buyer intending to use the assets to continue the same kind of business; the applicable buyer VAT-registration conditions must be checked. A mere sale of assets does not automatically qualify, and land and property can have additional conditions.
Worked example
A VAT-registered baker sells an operating bakery, including its equipment and customer business, to a VAT-registered buyer who intends to continue a bakery. Assuming all TOGC conditions are met and no special property issue applies, the transfer is not treated as a supply for VAT and the seller does not charge VAT on the qualifying transfer.
Common mistake
Treating every sale of business assets as a TOGC, or calling a qualifying transfer zero-rated instead of neither a supply of goods nor services.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Direct | June 2026–June 2027 |