Glossary · UK
What is Transfer of a Business as a Going Concern (TOGC)?
A transfer of a whole business as a going concern is outside the scope of VAT if specific conditions are met.
Full Definition
Under UK VAT law (VATA 1994 and VAT Notice 700/9), a transfer of a business as a going concern (TOGC) is not treated as a supply for VAT purposes, meaning no VAT is charged on the sale of the business assets. Conditions include: the assets must be used in the same kind of business by the buyer, the buyer must be registered (or required to register) for VAT, and if the assets include an opted-to-tax property the buyer must also have opted to tax and notified HMRC before the relevant date. TOGCs simplify business sales by avoiding a VAT cashflow burden on the buyer and reducing HMRC admin. Failure to correctly identify a TOGC can result in the seller incorrectly charging VAT, leading to assessments and penalties.