Buying or selling a business: what happens to the music licence?

When a business changes hands, TheMusicLicence doesn’t automatically carry over — the new owner normally needs their own, and the account is re-assessed. That’s both a risk (you can inherit a wrong tariff or a backdated liability) and an opportunity (a fresh assessment is the ideal moment to make sure you’re on the correct, lowest compliant tariff from day one).

Buying: what to check

• Whether the seller was licensed at all — and whether it was on the correct tariff.
• Any backdated or higher-rate exposure that could follow the premises.
• The audible area and usage type recorded on the existing account.
• Whether the sites, seats or staff details are accurate for how you’ll actually run it.

Selling: tidy it up first

Notify PPL PRS on completion so you’re not billed for a business you no longer own, and hand over accurate records to the buyer. A clean handover protects both sides.

The re-assessment opportunity

Because a change of ownership triggers a fresh look at the licence, it’s the perfect time for an audit — or, for a brand-new setup, to get the licence right from the start rather than inheriting years of someone else’s mistakes.

Buying or selling and want the music licence checked before it changes hands? Send us the details — we’ll review it for free and flag anything worth sorting first. No savings, no fee.

• Backdated up to six years: what to know →
• Do I need a music licence for my business? →
• How to reduce your music licence cost →

This guide is general information, not legal advice, and MLC is an independent consultancy — not affiliated with PPL PRS Ltd, PRS for Music or PPL.