VAT tribunal rulings threaten deal process.
Series: Property Week ; 64(24) 18 June 1999, 19(1)Publication details: 1999Subject(s): Summary: A VAT tribunal ruling has stated that it is the exchange of contracts, rather than the completion, that is the significant point of a property transaction made at auction. This has adverse implications for the classification of property transactions as Transfers of Going Concern (TOGC), which enables purchases to avoid paying VAT, because TOGC status has usually been approved between exchange of contracts and completion. Instead vendors will have to sell property as TOGC before knowing who the buyer is.| Item type | Current library | Call number | Copy number | Status | Barcode | |
|---|---|---|---|---|---|---|
| News article | London News article | WB3524-02 (Browse shelf(Opens below)) | 1 | Available | 101947-1001 |
A VAT tribunal ruling has stated that it is the exchange of contracts, rather than the completion, that is the significant point of a property transaction made at auction. This has adverse implications for the classification of property transactions as Transfers of Going Concern (TOGC), which enables purchases to avoid paying VAT, because TOGC status has usually been approved between exchange of contracts and completion. Instead vendors will have to sell property as TOGC before knowing who the buyer is.