I have a client who has just incorpated his sole trader business and I am now looking at valuing the Goodwill on the transfer. This is my first time so here is my thought process and would be grateful for comments/suggestions if this is wrong.
Firstly, he has £16k worth of assets being transferred (tools and equipment) valued at market value (think he used ebay) as at the date of commencement of the Ltd company.
Secondly, I value his goodwill at £60 which is the total of the last 3 years net profits per self assessments.
I have seen where to enter these figures on his next SA and propose to offset full £76k against Entrepreneurs Relief as all was sold as a going concern - therefore CGT liability should be nil.
Does this sound OK and would you still complete CG34 form or not bother?