Finance Bill Tracking Service 2007 | Budget 2007 | Budget Notes

BN58 VAT: transfer of going concern

Who is likely to be affected?

1   Any type of business that sells or acquires a business as a going concern, but mainly small and medium-sized enterprises.

General description of the measure

2   Record-keeping requirements for businesses transferred as a going concern will be brought into line with other tax and regulatory regimes so that the seller retains his records, except in the few cases where the buyer retains the seller's VAT number.

Operative date

3   This change will have effect on and after 1 September 2007.

Current law and proposed revisions

4   Section 49 of the VAT Act 1994, and regulation 6 of the VAT Regulations 1995, will be amended so that:

•   The seller will keep the business records in all but a few specified cases.

•   The seller must make available to the buyer information necessary for the buyer to comply with his duties under the VAT Act.

•   HMRC may disclose to the buyer information it holds that is needed by the buyer to comply with his duties under the VAT Act.

Further advice

5   If you have any questions about this change, please contact Ian Allen on 020 7147 0009 (email: A Regulatory Impact Assessment has been published today accompanying this measure. Information about Budget measures is available on the HM Revenue & Customs website at