HMRC accepts that if a business is sold as a going concern then the sale must include some element of goodwill.
The question of what value should be attributed to goodwill should be decided on the facts of each individual case.
HMRC has published a practice note Apportion the price paid for a business transferred as a going concern1 setting out its views and this is briefly summarised below.
When valuing goodwill it will usually be appropriate to value all the tangible assets together for sale as an operational entity so that a purchaser can if they wish trade from the day of purchase. There are a host of real and practical reasons why the assets in trade related premises cannot be actually separated without depreciating their combined value but HMRC accepts that for taxation
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