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I am a S/E bookkeeper and I am looking to form a Ltd at my next Y/E.  After 4 years trading (£35k+) income P/A I think that it is justifiable to charge the Ltd a value for goodwill.

I realise that this might lead to a CGT liability for me, which I am "happy" to pay.

Can any one give me some ideas on how to value the goodwill, (ave income, net profit etc)

Thanks in advance.



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By blok
26th Nov 2010 14:31


Given the level of income and type of personal service you provide - In my opinion any goodwill will be personal to you and therefore not capable of being sold on. 

Therefore I dont think the type of goodwill you are looking for exists.

However, if you do decide to go ahead, I would imagine that HMRC would not be too fussed.

You are best placed to value this but get this checked with HMRC on cg34 form and this will provide some assurance.



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29th Nov 2010 15:17

Valuing your goodwill

-- Jeremy Kitchin

Hi Steve - Contrary to the previous comment, I can assure you your goodwill does have a value.  We at APMA (the leading accountancy practice merger and acquisition brokers) have been valuing the goodwill of accountancy (and bookkeeping) practices for over 3.5 decades, particularly for the purpose of incorporation.  The true litmus test is to offer your fees on the open market to see if there are any takers.  We sold a block of £40k bottom-end clients (<£500 each) in July which attracted no less than 106 would-be Purchasers! The price paid was about £41,000.  

Go to our website and read the information on Valuing your goodwill.


Jeremy Kitchin

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