Kent Solicitors

In order for a transfer to qualify as a "transfer of a going concern" under the rules, it is not enough for the seller to transfer the assets and then say that he need not concern himself with what the buyer subsequently did. The buyer had to carry on the same kind of business as had been conducted by the seller. The VAT liability changes if the buyer in fact does not carry on the business himself, but licenses another to do it.
Example: Restaurateur sells business, buyer does not carry on business himself but puts in a self employed manager who also trades as a restaurant but pays a rent or license fee. This is not carrying on the same business for VAT purposes and the Seller must account for VAT.

Labels: Value added tax VAT transfer business going concern