Hi,
If the TOGC involves the sale of property and the seller has an option to tax on the property then it can also be part of the TOGC and there would be no VAT charged on the sale of the commercial/residential property if the conditions are met as below.
Please see the guidance, especially section 2.2.9:
Transfer a business as a going concern (VAT Notice 700/9)
If the property is being sold as a property rental business, then please see the guidance below:
Transfer a business as a going concern (VAT Notice 700/9)
If the conditions are not met for a TOGC and the seller has an option to tax on the commercial property then an apportionment would have to be made between the commercial and residential aspects of the building.
Please see the guidance below, specifically section 3.10:
Supplies not affected by an option to tax
Thank you.