IHTM25060) has been defined as the
benefit and advantage of the good name, reputation and connection
of the business. In practice, it is the ability of the company or
partnership to earn in excess of an average return on its tangible
assets. Goodwill is an asset of the business and has, therefore, to
be valued as such.
If the deceased owned both
you may ask the VOA (
IHTM23002) for a valuation on a going
concern basis, assuming that 100% Business Relief (
IHTM25021) is not available.
However, before you make such a request, ask the taxpayer for
The VOA will take into account the value of any goodwill
inherent in the property. The value of any non-inherent goodwill
for a business will be furnished only if specifically requested. If
you make such a request the last 3 years trading accounts before
the death should accompany it.
Nevertheless, the VOA normally has more information than SAV (whose responsibility it is to value goodwill) for valuing any non-inherent goodwill in the following types of business
If therefore you refer to the VOA the question of the value of any property relating to such a business, you should