TOGC ― other related issues

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note looks at a number of issues associated with transfers of going concerns (TOGCs), specifically:

•
the capital goods scheme (CGS)
•
VAT registration entitlements / obligations
•
VAT numbers
•
transferring VAT records
•
VAT groups

For an overview of TOGCs more broadly, see the TOGC ― overview guidance note.

In-depth commentary on the legislation and case law can be found in De Voil Indirect Tax Service V2.226.

How does a TOGC impact on capital goods scheme obligations?

The CGS is covered generally in the Capital goods scheme (CGS) ― overview guidance note. Broadly, it provides that for certain ‘capital items’, it’s necessary to monitor ‘use’ over a period of time to ensure that the VAT recovery initially obtained reflects the actual use of the item over a period of time. For example, if a business bought a building from which to make fully taxable supplies, it could recover input tax in full. However, if the next year the business model changed to fully exempt, the full VAT recovery wouldn’t

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Corporation Tax

Carried-forward losses restriction

Carried-forward losses restrictionOverview of the carried-forward loss restrictionAn important restriction in the use of losses carried forward was introduced by Finance (No 2) Act 2017. Subject to a de minimis of £5m (known as the deductions allowance), most carried-forward losses are restricted to

14 Jul 2020 11:09 | Produced by Tolley Read more

Value Added Tax

Supplies of goods and services connected with education

Supplies of goods and services connected with educationThis guidance note provides an overview of the VAT treatment of goods and services provided in connection with supplies of education. This should be read in conjunction with the following guidance notes:•Supplies of education•Local authority

14 Jul 2020 13:44 | Produced by Tolley Read more

Owner-Managed Businesses

Interest on late paid tax

Interest on late paid taxIntroductionInterest on late paid tax is a compulsory charge set out in legislation to reflect the interest which would have accrued to the Exchequer had the correct amount of tax been paid at the right time.Harmonised legislation was introduced in 2009 to:•set statutory

14 Jul 2020 12:00 | Produced by Tolley in association with Philip Rutherford Read more

��˾��ҹ��