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Liability to register for VAT when a business is transferred as TOGC due to historical turnover

Transferees who are not registered becomes liable to registration when a business (or part of a business) is transferred to them as a TOGC if both of the following apply¹:

1. Ìý

   •ÌýÌýÌýÌý the person who carried on the business before to the transfer ('the transferor') is a taxable person, and

2. Ìý

   •ÌýÌýÌýÌý the value of the transferee's taxable supplies in the period of one year ending at the time of transfer has exceeded the prescribed registration limit (the VAT registration threshold).

The table below provides details of the VAT registration threshold².

The transferee is treated as having carried on the business before as well as after the transfer for this purpose and supplies by the transferor are treated accordingly³. Therefore, the transferees are liable to registration