Anyone who buys or sells a business as a transfer of a going concern will be affected.
As from September 1, 2007 the records of a ToGC are retained by the vendor but information must be available to the purchaser by the vendor in order that he/she can undertake duties under the VAT Act.
Where permission is sought from HMRC for the purchaser to assume the vendor's VAT number, the vendor is still required to transfer the records to the purchaser unless the vendor needs to retain the records.
In this case he/she must apply for permission from HMRC to keep them.
Information on the transferred business may be given to the purchaser by HMRC if it is deemed necessary to comply with duties under the VAT Act.
The change in record keeping requirements for ToGC's brings the VAT rules into line with other regulatory regimes and was introduced as a response from businesses to simplify things.
Visit www.lawgistics.co.uk or call 0870 26 77 118 for more information.