Buying or selling a business: what happens to the music licence?
A change of ownership is both a risk (inherited errors) and the perfect moment to get onto the correct tariff.
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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 and flag anything worth sorting first. One site? The free Invoice Check gives you a written verdict in five working days. Four or more sites? The estate review is free and we only charge if we recover money. See pricing.
Sold, closed or taken over and still getting bills? See cancelling or reducing your licence, or tell us what happened.
- Backdated up to six years: what to know →
- Do I need a music licence for my business? →
- How to reduce your music licence cost →
Common questions
- Does a music licence transfer when you buy a business?
- No, TheMusicLicence doesn't automatically carry over. The new owner normally needs their own, and the account is re-assessed, which means you can inherit a wrong tariff or a backdated liability, but it's also a chance to get onto the correct, lowest compliant tariff from day one.
- What should I check before buying a business with a music licence?
- Whether the seller was licensed at all and 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, and whether the sites, seats or staff details are accurate for how you'll actually run it.
- What should I do about the music licence when selling a business?
- 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, including the audible area and usage type on file. A clean handover protects both sides and avoids disputes over the account later.
Want it checked or set up properly?
- Already paying? Send your latest invoice for a free check and a plain-English answer within five working days.
- Four or more sites? A free estate check, site by site, with a clear summary of anything that's off.
- No licence yet? We tell you exactly what to declare and make the application for you.
Get told when the rates change
PPL and PRS re-index their tariffs every year. Leave your email and we'll let you know when the main rates change (January and July), with a reminder to check your invoice. Nothing else, and you can unsubscribe any time.
Related guides
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.