I have a client who has been trading as a small hardware store for approximately 15 years. They now wish to cease the business and the lady's brother has decided to take the business over. The business does not own the premises they trade from nor do they hold any equipment on the balance sheet. Therefore, am i correct in saying that the only chargeable transfer will be the goodwill of the business? If so, how should this be valued? The business is making small profits each year of approximately £12k. The only other assets the business holds are stock (approx £8k) and cash (will be retained by the current trader). On the transfer from sister to brother no money will change hands for either goodwill or stock. What tax implications will these have for each party?