In HSM Law v HMRC ([2014] UKFTT 830 – 21 August 2014) the FTT found that the sale of part of a business did not amount to a transfer as a going concern (TOGC).
Following the closure of a law firm its partners had tried to start a new business at the same premises operating via a company (HSM) set up in the partners’ names. They had written to HMRC indicating that they wished to continue the VAT business of the former law firm. However the initiative had failed and all the partners had agreed to transfer their clients to various practices and to seek employment elsewhere. HSM had therefore been used solely for the purpose of closing down the partnership’s business.
HMRC considered that the transfer of the partnership’s assets to HSM had constituted a TOGC. The FTT...
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In HSM Law v HMRC ([2014] UKFTT 830 – 21 August 2014) the FTT found that the sale of part of a business did not amount to a transfer as a going concern (TOGC).
Following the closure of a law firm its partners had tried to start a new business at the same premises operating via a company (HSM) set up in the partners’ names. They had written to HMRC indicating that they wished to continue the VAT business of the former law firm. However the initiative had failed and all the partners had agreed to transfer their clients to various practices and to seek employment elsewhere. HSM had therefore been used solely for the purpose of closing down the partnership’s business.
HMRC considered that the transfer of the partnership’s assets to HSM had constituted a TOGC. The FTT...
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