Key domestic legislation: Value Added Tax (Special Provisions) Order 1995 (SI 1995/1268), art 5
Normally the sale of the assets of a VAT registered business (or a business required to be VAT registered) will be subject to UK VAT at the appropriate rate. However, if the assets are sold as part of a going concern, the sale of the assets will not be subject to UK VAT if certain conditions are met. These are known as the 'transfer of going concern' provisions or TOGC.
The TOGC rules are mandatory and must be applied automatically. The TOGC rules are a business facilitation measure in that they remove potential cashflow issues associated with having to account for UK VAT on a high value transaction. The rules also protect government
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