The Commercial Property Standard Questionnaire asks about anticipated VAT treatment of a transaction which may not be a TOGC, ‘however unlikely that may be’. In practice, ensuring that a transaction is properly a VAT free Transfer of a Going Concern often requires positive action to be taken.
Failing to recognise when a transaction cannot be VAT free, leaves either party to the transaction at risk of irrecoverable VAT up to 20% of the market value of the property plus financing costs and potentially penalties and interest from HMRC.
Who should attend Our update is aimed at commercial property lawyers and we will walk through all the requirements for a VAT free TOGC and highlight those transactions which cannot qualify. It will also explore practical considerations to help you understand the steps required by property owners and buyers to avoid an unnecessary VAT charge.
• When can a transaction be VAT free
• What actions and notifications are required to ensure TOGC status
• Additional considerations for Capital Goods Scheme items
• Impact if VAT is not charged when it should be
• How to prepare in good time for a TOGC property transaction