Can a property acquisition be classed as TOGC?

My Client wants to buy a property which they currently use under a lease for their main business and therefore are a tenant. The landlord has opted to tax therefore VAT is being charged.

Can my client therefore buy the property through a holdco and treat it as a transfer of a going concern. I read somewhere that it will effectively be a "rental business" therefore will qualify for TOGC provided all the normal TOGC rules are met. They want to use a holdco because they want to keep the property separate.

If not I was going to suggest that the holdco buy the property and they register for VAT and opt to tax thereby reclaiming the VAT on the purchase price. The subsequent rental will obviously be subject to VAT but the main business can claim that back as they require.

Comments
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TOGC

BKD |
BKD's picture

TOGC is the better option

Steve Kesby |
Steve Kesby's picture

Landlord to Landlord

DMGbus |
DMGbus's picture

Minor clarification

BKD |
BKD's picture

type of lease/sale

david5541 |

Thanks

zacharyjonah |

Oops

BKD |
BKD's picture

ALL????

Steve Kesby |
Steve Kesby's picture