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Personal Goodwill

Can anyone direct me some kind of official wording about personal goodwill, I'm in a drawn out debate with a management consultant client who has incorporated and wants to claim for goodwill, because she has "a friend in the same line whose accountant said she could". I can't find anything that spells out HMRC's thinking on personal goodwill to show her.

Can anyone help?


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Personal goodwill is a distraction

You can't just sell goodwill.  Goodwill simply doesn't exist independent of the business it attaches to.

If she had been selling her business to another incorporated management consultant (in an arm's length transaction with due diligence having been performed), how much could she have sold it for.  Deduct from that figure the fair values of the identifiable net assets of the business, and the balance is the real goodwill.  I'd expect that there would be some value there, albeit not a lot.

I don't think you'll find anything on HMRC's formerly expressed view of personal goodwill.  They've hopefully accepted that there never was such a thing and that the above approach is the only and correct approach.

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still looking for something a bit official

I agree with George's opinion, I just want something I can show her...

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I haven't seen anything official apart from this link http://www.hmrc.gov.uk/manuals/insmanual/ins44011.htm 


Also there is good guidance in "Incorporating a Business" by Roger H. Jones

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That's what I wanted. and I'm buying the book!

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