The Appellants had been employed within a manufacturing and distribution business (OldCo) which went into administrative receivership on 13 September 2004. The Appellants conducted a buyout. They acquired a new company (NewCo) and on 15 October 2004 the Appellants with an unrelated third party investor became directors and shareholders of NewCo. On 21 October 2004 NewCo applied to HMRC to be registered for VAT.
On 25 October 2004 NewCo purchased various assets of OldCo from the administrative receiver. It was understood that the acquisition was ‘a transfer of a going concern’ for the purposes of VAT and ‘the sale of a business as a going concern’ for employment protection purposes. All employees retained by OldCo on 25 October 2004 were automatically transferred to NewCo.
In October 2005 further shares in NewCo were issued to the shareholders. The Appellants claimed Enterprise...
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The Appellants had been employed within a manufacturing and distribution business (OldCo) which went into administrative receivership on 13 September 2004. The Appellants conducted a buyout. They acquired a new company (NewCo) and on 15 October 2004 the Appellants with an unrelated third party investor became directors and shareholders of NewCo. On 21 October 2004 NewCo applied to HMRC to be registered for VAT.
On 25 October 2004 NewCo purchased various assets of OldCo from the administrative receiver. It was understood that the acquisition was ‘a transfer of a going concern’ for the purposes of VAT and ‘the sale of a business as a going concern’ for employment protection purposes. All employees retained by OldCo on 25 October 2004 were automatically transferred to NewCo.
In October 2005 further shares in NewCo were issued to the shareholders. The Appellants claimed Enterprise...
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