A buyer of a real estate asset (without a corporate wrapper) wishes to insure the risk that the sale is found to a taxable transaction for VAT purposes and not subject to Transfer of Going Concern treatment.

Even though the buyer had some comfort from Her Majesty’s Revenue & Customs that they are in agreement that the exemption is available, that agreement was sought by the seller and was given based on information provided by the seller. This buyer was a trust and required absolute certainty that the sale did not attract VAT at 20% on the entire sale proceeds. The insurance can provide the trust with the certainty it needs to be able to proceed with the acquisition of the asset.

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