Introduction to TOGC VAT in the United Kingdom

When buying or selling a business in the United Kingdom, Value Added Tax (VAT) can significantly affect the overall cost and structure of the transaction. One important provision within UK VAT legislation is the Transfer of a Going Concern (TOGC). This rule allows certain business transfers to be treated as outside the scope of VAT, meaning VAT is not charged on the sale. For many business owners, understanding TOGC is essential because it can improve cash flow, simplify completion and prevent unnecessary financial pressure during a transaction.