Last updated: 14 October 2026
Do you have to hand over VAT records to the buyer of your business?
Usually yes, if the sale is a transfer of a going concern (TOGC) and the buyer takes over your VAT registration number. If the buyer gets a new VAT number of their own, you normally keep your records but must make sure the buyer can see any information they need to comply. In either case, you can ask HMRC for permission to keep the records yourself. If you do, you must give the buyer access to the information they need.
What is a TOGC?
When you sell a business as a going concern, the sale of its assets is usually outside the scope of VAT. That means no VAT is charged on the sale price, if:
- the business is sold as a going concern and the buyer carries on the same kind of business
- the buyer is VAT-registered, or must register, as a result of the transfer
- there is no significant break in trading
- for property, the buyer has opted to tax if the seller had opted
Two ways to handle the VAT registration
1. The buyer takes over your VAT number
The buyer applies to keep your registration number. The buyer then takes on all past VAT liabilities and must keep your VAT records. You must hand them over unless HMRC agrees otherwise.
2. The buyer gets a new VAT number
You cancel your registration, and the buyer registers separately. You usually keep your records, but you should agree to give the buyer what they need, for example for the Capital Goods Scheme.
What records are involved
- VAT returns and workings for at least the last 6 years
- Sales and purchase invoices
- Capital Goods Scheme adjustments for property and computer equipment
- Any option to tax documents
- MTD digital records and software access
Taking over the VAT number: think carefully
Taking over the seller’s number is convenient, but the buyer becomes liable for any VAT errors the seller made. Most buyers prefer a new number unless continuity matters to them, for example for supplier accounts.
Example
Mark sells his café to Asha as a going concern. Asha registers for VAT with a new number. Mark keeps his records and files a final VAT return. Asha asks for the equipment invoices to support her capital allowances, and Mark provides copies.
The sale agreement
Your solicitor should include VAT clauses covering:
- the parties’ intention to treat the sale as a TOGC
- who keeps the records and how the other party can access them
- warranties about past VAT compliance
- what happens if HMRC rules the sale isn’t a TOGC
Frequently asked questions
Do I charge VAT on the sale of my business?
Not if it qualifies as a TOGC. If it doesn’t, VAT may be due on the assets.
Can I keep my records after selling?
Yes, if HMRC agrees or the buyer gets a new number.
What about stock and equipment?
They are included in the TOGC if they are transferred with the business.
Do I need to deregister?
Yes, unless the buyer takes over your number. See VAT after deregistration.
Related: how long to keep VAT records.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with VAT when selling your business. See our VAT accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
