{"id":2344,"date":"2021-12-02T04:00:00","date_gmt":"2021-12-02T04:00:00","guid":{"rendered":"im-22872"},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T00:00:00","slug":"togc-overview","status":"publish","type":"post","link":"https:\/\/ep-accountants.co.uk\/togc-overview\/","title":{"rendered":"TOGC overview"},"content":{"rendered":"<p>The transfer of a business as a going concern (TOGC) rules cover&nbsp;the VAT liability on&nbsp;the sale of a business. Normally the sale of the assets of a VAT registered or VAT registerable business will be subject to VAT at the appropriate rate.<\/p>\n<p>Where the sale of a business includes assets and meets certain conditions, the sale will be categorised as a TOGC. A TOGC is defined as &#39;neither a supply of goods nor a supply of services&#39; and is therefore outside the scope of VAT. Under the TOGC rules no VAT would be chargeable on a qualifying sale.<\/p>\n<p>All the following conditions are necessary for the TOGC rules to apply:<\/p>\n<ul>\n<li>The assets must be sold as part of a &#39;business&#39; as a &#39;going concern&#39;. In essence, the business must be operating as such and not just an &#39;inert aggregation of assets&#39;.<\/li>\n<li>The purchaser intends to use the assets to carry on the same kind of business as the seller.<\/li>\n<li>Where the seller is a taxable person, the purchaser must be a taxable person already or become one as the result of the transfer.<\/li>\n<li>Where only part of a business is sold it must be capable of separate operation.<\/li>\n<li>There must not be a series of immediately consecutive transfers.<\/li>\n<li>There are further conditions in relation to transactions involving land.<\/li>\n<\/ul>\n<p>The TOGC rules can be complex, and both the vendor and purchaser of a business must ensure that the rules are properly followed. The TOGC rules are also mandatory which means that it is imperative to establish from the outset whether a sale is or is not a TOGC. For example, if VAT is charged in error, the buyer has no legal right to recover it from HMRC and would have to seek to recover this &#39;VAT&#39; from the seller.<\/p>\n<div style='font-size:smaller' class='im_source'>Source: HM Revenue &#038; Customs   Sun, 28 Nov 2021 00:00:00 +0100<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The transfer of a business as a going concern (TOGC) rules cover the VAT liability on the sale of a business. Normally the sale of the assets of a VAT registered or VAT registerable business will be subject to VAT at the appropriate rate.<\/p>\n<p>Where the<\/p>\n","protected":false},"author":1,"featured_media":2345,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[24],"tags":[],"_links":{"self":[{"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/posts\/2344"}],"collection":[{"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/comments?post=2344"}],"version-history":[{"count":0,"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/posts\/2344\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/media\/2345"}],"wp:attachment":[{"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/media?parent=2344"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/categories?post=2344"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/tags?post=2344"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}