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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Law
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Experience:  English solicitor with over 12 years experience
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I am planing to purchase a existing Resturant business. What

Resolved Question:

I am planing to purchase a existing Resturant business. What is an acquisition and differences between purchasing this business as an entirely new venture, or an existing business making the acquisition?
Submitted: 3 years ago.
Category: Law
Expert:  UKSolicitorJA replied 3 years ago.
Hello,

There is not much difference other than VAT implication, for instance if the business is transferred as a going concern, it will normally not be subject to VAT.

See here for further information

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000093&propertyType=document#P23_3316

Can I help further?
Customer: replied 3 years ago.

ok what is acquisition

Expert:  UKSolicitorJA replied 3 years ago.
An acquisition is simply a purchase.
Customer: replied 3 years ago.
Sorry your answers are very brief I don't understand what you mean by if the business is transferred as a going concern.

when purchasing a business or a company what is the differences between the purchase of a business or the company.
Expert:  UKSolicitorJA replied 3 years ago.
Transfer as a going concern simply means you acquire a business which is already operating I.e. It has not shut down already e.g. You take over a coffee shop with its existing assets, employees, customers etc from the owner.

Sale of the company means the company's shares are transferred to you along with the company's assets and liabilities. Sale of a business is where you take over certain aspects of the business e.g. Assets, furniture I.e. You may choose what to acquire and what not to acquire of the business.

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