In order for TOGC relief to be available when part of a business is transferred, the economic activity must not change as a result of the transfer. Further, what is to be transferred must be more than a bundle of disparate assets, it must be capable of putting the transferee in possession of something that can be operated as a business. The recent case of AB SKF opens up a new possibility that a share sale can be treated as a TOGC and this offers an opportunity for increased VAT recovery.
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In order for TOGC relief to be available when part of a business is transferred, the economic activity must not change as a result of the transfer. Further, what is to be transferred must be more than a bundle of disparate assets, it must be capable of putting the transferee in possession of something that can be operated as a business. The recent case of AB SKF opens up a new possibility that a share sale can be treated as a TOGC and this offers an opportunity for increased VAT recovery.
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes: