The Value Added Tax Regulations 1995

Transfer of a going concern

6.  —

(1) Where—

(a) a business is transferred as a going concern,

(b) the registration under Schedule 1 to the Act of the transferor has not already been cancelled,

(c) on the transfer of the business the registration of the transferor under that Schedule is to be cancelled and either the transferee becomes liable to be registered under that Schedule or the Commissioners agree to register him under paragraph 9 of that Schedule, and

(d) an application is made in the form numbered 3 in Schedule 1 to these Regulations by or on behalf of both the transferor and the transferee of that business,

the Commissioners may as from the date of the said transfer cancel the registration under Schedule 1 to the Act of the transferor and register the transferee under that Schedule with the registration number previously allocated to the transferor.

(2) An application under paragraph (1) above shall constitute notification for the purposes of paragraph 11 of Schedule 1 to the Act.

(3) Where the transferee of a business has under paragraph (1) above been registered under Schedule 1 to the Act in substitution for the transferor of that business, and with the transferor’s registration number—

(a) any liability of the transferor existing at the date of the transfer to make a return or to account for or pay VAT under regulation 25 or 41 shall become the liability of the transferee,

(b) any right of the transferor, whether or not existing at the date of the transfer, to credit for, or to repayment of, input tax shall become the right of the transferee, and

(c) any right of either the transferor, whether or not existing at the date of the transfer, or the transferee to payment by the Commissioners under section 25(3) of the Act shall be satisfied by payment to either of them.

(4) In addition to the provisions set out in paragraph (3) above, where the transferee of a business has been registered in substitution for, and with the registration number of, the transferor during a prescribed accounting period subsequent to that in which the transfer of the business took place but with effect from the date of the transfer of the business, and any—

(a) return has been made,

(b) VAT has been accounted for and paid, or

(c) right to credit for input tax has been claimed,

either by or in the name of the transferee or the transferor, it shall be treated as having been done by the transferee.