- The General Court held that a business transfer carried out through intermediate transfers to two individuals, who then contributed their shares to a partnership, did not qualify as a VAT transfer of a going concern (TOGC).
- The Court said each 50% transfer had to be assessed separately, and a half-share of the business was not, by itself, an autonomous economic unit capable of independent operation.
- TOGC relief under Article 19 VAT Directive applies only where the transferred assets constitute a business or part of a business able to carry on an independent economic activity, and the transferee intends to operate it as such.
- Because the business was ultimately to be carried on by the partnership, and the initial transfers to the daughters did not each meet the TOGC conditions, exemption did not apply.
Source: simmons-simmons.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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