Transfer of Going Concern
Discussion
Keep it simple people.
I’m almost done acquiring domestic BTLs, now looking to commercial stuff.
For a lot of properties where there is a commercial tenant in situ, ( like a bookies or whatever) its states in the add ,
“However it is anticipated that and sale will be treated as TOGC”.
Now my current Ltd co is not vat registered because it doesn’t need to be.
What are the implications for me buying a property with this statement in the ad?
What are the implications for me? I know nothing really about VAT as I’ve never dealt with it. The rent received is approx £50k a year.
I’m almost done acquiring domestic BTLs, now looking to commercial stuff.
For a lot of properties where there is a commercial tenant in situ, ( like a bookies or whatever) its states in the add ,
“However it is anticipated that and sale will be treated as TOGC”.
Now my current Ltd co is not vat registered because it doesn’t need to be.
What are the implications for me buying a property with this statement in the ad?
What are the implications for me? I know nothing really about VAT as I’ve never dealt with it. The rent received is approx £50k a year.
Thanks all for the replies.
So yes, I am looking at buying a commercial property which has approx 8 tenants in situ.
The add states there is no VAT to pay and as each unit within the building is less than the threshold, no rates to pay.
Happy days.
But then I see the statement about it being sold as a glijg concern and from a buyers point of view I don’t understand how that impacts me.
And then I see some ads where there vat is applicable as well as being sold as a going concern.
If I were to make an offer, I would get a survey done on the building and DD on the tenants and the leases ( can you pay someone to do all that? )
So yes, I am looking at buying a commercial property which has approx 8 tenants in situ.
The add states there is no VAT to pay and as each unit within the building is less than the threshold, no rates to pay.
Happy days.
But then I see the statement about it being sold as a glijg concern and from a buyers point of view I don’t understand how that impacts me.
And then I see some ads where there vat is applicable as well as being sold as a going concern.
If I were to make an offer, I would get a survey done on the building and DD on the tenants and the leases ( can you pay someone to do all that? )
Ok yes, so if I wasn’t vat registered then I’m paying 20% vat on the sale price.
Fine.
Am I reading too much into this? I still not clear what impacts, if any, buying a TOGA has on me apart from taking on existing liabilities and bad tenants.
Fine.
Am I reading too much into this? I still not clear what impacts, if any, buying a TOGA has on me apart from taking on existing liabilities and bad tenants.
Edited by craig511 on Wednesday 17th April 12:58
So, assuming he has, then I pay VAT. Fine
But, if we assume then the tenants are paying vat on their rent, what would I do then?
1/not charge vat so right away they are 20% up.
2/keep the rent the same and pocket the 20% myself, but then the tenants can’t claim that and I’m sure they wouldn’t be too happy.
But, if we assume then the tenants are paying vat on their rent, what would I do then?
1/not charge vat so right away they are 20% up.
2/keep the rent the same and pocket the 20% myself, but then the tenants can’t claim that and I’m sure they wouldn’t be too happy.
AnotherUsername said:
I’ve done 4 x TOGC and all was great until hmrc decided two had been done incorrectly and it was looking like I had to pay £200k vat and not have the opportunity to claim it back as you would ordinarily. To add further spice my solicitor had just died!
All sorted in the end. Phew
Is there a way to check it had been done right upfront? Something in writing from HMRC for example or to set aside VAT “just in case” . All sorted in the end. Phew
Gassing Station | Finance | Top of Page | What's New | My Stuff