In this situation, it may be possible to put in place an agreement now, with a historic ‘effective date’.For example, the selling and buying companies participating in a business transfer may agree between themselves to treat the transaction as if it happened at the previous year end.You need to tell us the period you want it backdated for and give full details of why your claim was late.We will look at your reason for wanting your claim to be backdated and we will write to you with our decision.Housing Benefit is awarded the same way Council Tax Reduction is.The only difference is that the maximum amount of time we can back date is one month, if you can prove you have good reason for not claiming sooner. The following are some circumstances that we would look at a backdate for a 'good cause' reason.This could involve putting in place a business transfer agreement now, which is dated when it is actually signed.
The same considerations as regards legal and other due diligence would apply so as to manage the risk of any unintended liabilities being triggered, and to make sure that the legal transfer of the relevant assets is completed.The document should be dated when it is actually signed, but it can refer to the historic effective date of the transaction.The transaction should be ratified by minutes or resolutions of the participating entities.Although it may have been intended to put in place a new arrangement by a particular date – often a year end – that date may now have passed. Obviously the ideal position is to put in place the legal documents in advance. Well, it depends on what was transferred, and whether it can be said that the relevant transaction has already happened.
Documenting a transaction which has already happened One possible scenario is that the relevant transaction has already happened, but just hasn’t been documented yet.Together, these factors may indicate that the beneficial interest in the relevant assets has passed from a legal point of view.