Finance Act 2007

100 VAT: transfers of going concerns

(1) Section 49 of VATA 1994 (transfers of going concern) is amended as follows.

(2) In subsection (1) (transferor’s supplies treated as transferee’s supplies for purposes of registration and transferor’s records to be kept by transferee after transfer)—

(a) after “Where a business” insert “, or part of a business,”,

(b) after “on the business” insert “or part of the business”, and

(c) omit paragraph (b) (together with the “and” before it).

(3) In subsection (2) (regulations for securing continuity of Act in case of transfers of going concerns), after “a business” insert “, or part of a business,”.

(4) After that subsection insert—

“(2A) Regulations under subsection (2) above may, in particular, provide for the duties under this Act of the transferor to preserve records relating to the business or part of the business for any period after the transfer to become duties of the transferee unless the Commissioners, at the request of the transferor, otherwise direct.”

(5) In subsection (3) (provision which may be made by regulations), in paragraph (a), after “the transferor” insert “(other than the duties mentioned in subsection (2A) above)”.

(6) After that subsection insert—

“(4) Subsection (5) below applies where—

(a) a business, or part of a business, carried on by a taxable person is transferred to another person as a going concern, and

(b) the transferor continues to be required under this Act to preserve for any period after the transfer any records relating to the business or part of the business.

(5) So far as is necessary for the purpose of complying with the transferee’s duties under this Act, the transferee (“E”) may require the transferor—

(a) to give to E, within such time and in such form as E may reasonably require, such information contained in the records as E may reasonably specify,

(b) to give to E, within such time and in such form as E may reasonably require, such copies of documents forming part of the records as E may reasonably specify, and

(c) to make the records available for E’s inspection at such time and place as E may reasonably require (and permit E to take copies of, or make extracts from, them).

(6) Where a business, or part of a business, carried on by a taxable person is transferred to another person as a going concern, the Commissioners may disclose to the transferee any information relating to the business when it was carried on by the transferor for the purpose of enabling the transferee to comply with the transferee’s duties under this Act.”

(7) In section 94(6) of VATA 1994 (meaning of “business” etc)—

(a) after “a business” insert “, or part of a business,”, and

(b) for “its assets or liabilities” substitute “the assets or liabilities of the business or part of the business”.

(8) In paragraph 1(2) of Schedule 1 to that Act (registration in respect of taxable supplies), after “Where a business” insert “, or part of a business,”.

(9) In paragraph 8(2)(b) of Schedule 4 to that Act (matters to be treated as supply of goods or services), after “a business” insert “, or part of a business,”.

(10) The amendments made by this section have effect in relation to transfers pursuant to contracts entered into on or after 1st September 2007.