Discuss

Transfer of a going concern: decide the VAT treatment before completion.

The conditions, registration and property points that determine whether a business transfer falls outside the scope of VAT.

Discuss your position
01Identify the business assets
02Test buyer intention and registration
03Resolve property conditions
04Align contracts and completion
01

The conditions follow the facts

TOGC treatment can apply when the assets form a live business or separately operating part and the buyer intends to continue the same kind of business. The buyer must be registered or become liable where the seller is taxable.

  • Operating business
  • Same kind of activity
  • Buyer registration
  • Separately operating part
02

Property needs extra attention

Where land or buildings would otherwise be standard-rated, the buyer's option to tax and disapplication notification conditions can affect TOGC treatment. The relevant steps must be completed by the required time.

  • Property-rental business
  • Buyer option to tax
  • Disapplication statement
  • Completion sequencing
Primary sources

Tax guidance changes. These official sources were checked on 31 August 2026.

VAT Notice 700/9: transfer of a going concernVAT Notice 742A: option to tax

Related VAT services

Property and construction VATLand, buildings, option to tax, development and construction reverse-charge advice at the point it matters.VAT groups and restructuringVAT grouping, transfers of going concerns, legal-entity changes and transaction implementation for business change.VAT due diligenceFocused buy-side, sell-side and transaction VAT review with quantified findings and practical protections.
Important

This page provides general information, not advice for a particular transaction. VAT treatment depends on the complete facts and current law.