BIM31605 - VAT: transfer as a going concerns

Where a business carried on by a ’taxable person' is transferred to another person as a going concern, the transferee is treated as having carried on the business both before and after the transfer, and taxable supplies by the transferor are treated accordingly (Value Added Tax Act 1994 S49). There is, for example, no VAT chargeable on the sale of stock in trade on the transfer. This situation should not give rise to any special problems as regards Case I computations.