In HMRC v Royal College of Paediatrics and Child Health [2015] UKUT 0038 (28 January 2015) the UT found that the sale of a building was not a transfer of a going concern.
The Royal College – a charity whose activities are primarily non-business or exempt – owned premises which it partially let to BAPM another charity. It had purchased a building and the issue was whether the sale qualified as a transfer of a going concern (TOGC).
The Royal College had been advised that the sale would qualify as a TOGC if the vendor Coleridge entered into an agreement for the lease of part of the building with BAPM prior to its sale. The sale was then completed subject to the agreement and on the basis that it was a TOGC.
Distinguishing Dartford Borough Council [2007] Decision No. 20423 the UT stressed that...
