Chandra Bahadur KC v The Commissioners for HMRC
Decision date: 10 September 2026
Neutral citation: [2026] UKFTT 1300 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
This appeal concerned whether Mr KC, who took over a takeaway business from Wok to Box Limited, was properly liable for VAT registration. The Tribunal found the business was transferred as a going concern on 12 November 2019, that Wok to Box Limited's taxable supplies in the relevant year exceeded the VAT registration threshold, and that the paragraph 1(3) exception did not apply. The appeal was dismissed and HMRC's registration of Mr KC was varied to take effect from 12 November 2019.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
Where a business is transferred as a going concern from a person whose supplies exceeded the VAT registration threshold, the transferee can be treated as having carried on the business for the prior period and thus become liable to register; a transfer date may be fixed at the date of corporate dissolution where the parties' accounts and other evidence identify that as the date of uninterrupted continuation.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The Tribunal noted (obiter) that the transferor's failure to have been actually VAT‑registered is irrelevant if it was a taxable person required to register, and that third‑party online platform sales data can constitute direct evidence of turnover for VAT registration purposes.