The Value Added Tax Regulations 1995

Transfer of a going concernU.K.

6.  —

(1) Where—

(a)a business [F1or part of a business] is transferred as a going concern,

(b)the registration under Schedule 1 [F2or 1A] to the Act of the transferor has not already been cancelled,

(c)on the transfer of the business [F3or part of it] the registration of the transferor [F4under either Schedule] is to be cancelled and either the transferee becomes liable to be registered [F4under either Schedule] or the Commissioners agree to register him [F4under paragraph 9 of Schedule 1 to the Act], and

(d)an application is made in [F5the form specified in a notice published by the Commissioners] by or on behalf of both the transferor and the transferee of that business [F6or the part transferred],

the Commissioners may as from the date of the said transfer [F7cancel the registration under Schedule 1 or 1A to the Act of the transferor and register the transferee under Schedule 1 or 1A to the Act as appropriate 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 [F8or paragraph 7 of Schedule 1A] to the Act.

(3) Where the transferee of a business [F9or part of a business] has under paragraph (1) above been registered under Schedule 1 [F10or 1A] to the Act in substitution for the [F11transferor of it], 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 [F1240] 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, F13...

(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[F14,

(d)any right of the transferor, whether or not existing at the date of the transfer, to claim a refund under section 36 of the Act shall become the right of the transferee, [F15and]

(e)any liability of the transferor, whether or not existing at the date of the transfer, to account for an amount under Part XIXA of these Regulations, shall become that of the transferee][F16, and

(f)any records relating to the business which, by virtue of these Regulations or a direction made by the Commissioners, are required to be preserved for any period after the transfer shall be preserved by the transferee unless the Commissioners, at the request of the transferor, otherwise direct.]

(4) In addition to the provisions set out in paragraph (3) above, where the transferee of a business [F17or part of a business] has been registered in substitution for, and with the registration number of, the transferor during a prescribed accounting period [F18subsequent to that in which the transfer took place] but with effect from [F19the date of the transfer], 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.