In Haymarket Media Group Ltd, the FTT found that the sale of a property was not a TOGC because, on a true analysis of the transaction, there was no transfer of a property development business nor of a property lettings business. Continuity and sameness of the business was required both before and after the transfer. Under the Kenmir test, the underlying commercial reality and substance of the transactions was key. The decision shows that last minute planning to persuade a seller to put in steps to meet the VAT transfer of a going concern (TOGC) conditions is far from straightforward.
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In Haymarket Media Group Ltd, the FTT found that the sale of a property was not a TOGC because, on a true analysis of the transaction, there was no transfer of a property development business nor of a property lettings business. Continuity and sameness of the business was required both before and after the transfer. Under the Kenmir test, the underlying commercial reality and substance of the transactions was key. The decision shows that last minute planning to persuade a seller to put in steps to meet the VAT transfer of a going concern (TOGC) conditions is far from straightforward.
If you are not a subscriber, subscribe now to read this content.
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