In Robert Cross v HMRC [2014] UKFTT 907 – 19 September 2014 the FTT found that the right to a VAT refund had passed to the transferee under a transfer of a business as a going concern (TOGC).
Robert Cross had been retailing cars as a sole trader since 1977 when he decided to incorporate his business by transferring it as a going concern to a newly incorporated company in 1985. He applied for the relocation of his VAT registration number to the company.
In March 2009 he claimed repayment of VAT wrongly paid (VATA 1994 s 80(1)) in relation to demonstrator rental and courtesy vehicles covering the period from 1981 to incorporation. A separate claim was lodged for the company for the period 1985 onwards.
HMRC rejected the claim as sole proprietor for the period 1981 to 1985 on the ground that Mr Cross’s...
