TOGC decision

摘要

The Morton Hotels Ltd VAT tribunal decision will probably prove an important one as regards defining a transfer of going concern (TOGC). In this case a hotel was sold by one hotel group to another, and continued at all times to be traded as a hotel. However, the purchaser decided immediately to sell and lease back the asset. Despite the fact that the purchaser therefore continued to use the property to provide the same services, it had changed its interest in the property and had created an intervening transaction. Revenue & Customs argued that the immediate sale invalidated TOGC treatment.