Clients farm business is to become a partnership(vat registration to continue) with the sub-contracting business continuing but not registered for vat.
Can the TOGC rules apply to transfer the assets of the farm only thus saving on the output vat as assets will be approx £15k on date of transfer.
Will the sub-contracting business activity still transfer onto the new vat certificate? , which we don’t want.
We simply need the farm under the new legal entity to be vat registered whilst having no vat paid out on assets.
Assets claimed on the subcontracting accounts will be below £5k nett threshold so no vat.
Or do we simply do Vat 7 form/ cancel the Vat registration for sole trader and his business interests and do Vat 1 for the new partnership/new vat number. (Sell the asset to farm partnership and claim back the vat ?? , is this allowed??)
Some guidance would be appreciated