3.2 Transfer of a going concern.—Section 4(2) of the Act treats, as a supply of goods, the transfer of a taxable activity (or a portion of a taxable activity capable of separate operation) as a going concern. For example, a business person who is retiring may sell his flower shop, or a computer store owner who is downsizing might sell the retail portion of his business and retain and concentrate on the repair portion or department. These transfers would fall within the scope of section 4(2) and would be deemed a supply of goods. The transfer may be zero rated under Schedule 1, if the conditions of Schedule 1, paragraph 2(1)(i) are met. If the buyer uses some of the acquired assets for purposes other than to make taxable supplies, according to section 4(18) of the Act, the buyer is treated as making a taxable supply on the acquisition of the going concern to the extent that the buyer uses the goods or services acquired for purposes other than to make taxable supplies. Under section 18(10) of the Act, the taxable supply by the buyer occurs when the supply of the going concern under section 4(2) of the Act occurs.