Bankruptcy

Bankruptcy

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A client has taken over a business (a pub) from someone who was declared bankrupt. Few questions - can this still be a TOGC for VAT purposes, or can my client apply for new VAT registration for his new business? Secondly, when someone declares bankruptcy, are all their debts extinguished? My concern is for my client being chased for debts which are not his. Any pointers would be gratefully received.
DK

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By User deleted
20th Sep 2006 22:32

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C&E shouldn't allow the old registration to continue anyway if it's a bankruptcy.

You say your client has taken the business over from the bankrupt. Do you actually mean from the Trustee? (I hope...)

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By AnonymousUser
20th Sep 2006 14:56

A few points
Firstly, I hope for your client's sake that the pub is a viable business.

Secondly, your client should UNDER NO CIRCUMSTANCES take over the existing VAT registration. He wouldn't want to end up having to pay the vendor's debt to HMRC.

Thirdly, I'm not an insolvency specialist, but businesses don't go bankrupt, only the people (or companies) running them. So long as your client is simply buying a bundle of assets (lease of the pub, stock, goodwill, he won't make himself liable for the debts.

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