Andrew Needham looks at VAT consequences of selling a business.
Selling a business can be a complex matter. One of the points to consider is the VAT consequences of the sale. When you sell your business, you can either do it by a share sale (if it is a company) or you can sell the trade and assets.
The VAT consequences of the two alternative methods of sale are very different, and can affect the ability to recover VAT on the associated professional costs.
Share sale
Selling the shares in your business can be a time consuming and expensive business, and there are a number of consequences that you should be aware of.
For example, the sale of existing shares is an exempt supply, and that can have consequences on the ability to recover VAT on the associated costs. If you make an exempt supply, you cannot recover the VAT on directly attributable
