The transfer of a business or part of a business to a taxable person is not a supply for VAT purposes. Where the Transfer of Business Relief applies, VAT is not charged on the consideration paid for the business.
Typical Problems that we come across
Sometimes it is not clear to the parties whether the assets being transferred comprise a business for the purpose of the Transfer of Business Relief. Before embarking on the transfer the vendor will need to decide whether or not the transaction is the transfer of a business.
How We Can Help
In cases like this the VAT costs of coming to the wrong decision can be substantial. When we are asked for advice we analyse the transaction with a view to determining whether it comprises the transfer of business.
Our tax advisors have an in depth understanding of the VAT legislation and Revenue practice and can help guide you through the transfer of business relief.
