Although it was previously the responsibility of Inspectors to
agree the value of business goodwill, all goodwill valuations are
now undertaken by SAV. All requests for the valuation of goodwill
of companies and businesses are referred to the Goodwill Team.
The Goodwill Team will take responsibility for:-
The valuations are dealt with under a PSV reference number.
If the business or company is situated outside the UK the
Goodwill Team will liaise, as appropriate, with the Foreign Team.
Also, some specialist valuations are passed to the appropriate
team.
It is possible that in settling a company's Corporation Tax
liability on the disposal of its assets, a value for goodwill may
have been agreed either by the Inspector or SAV, on acquisition
and/or at 31 March 1982. If a
share valuation at the same date is required and
is calculated by reference to a whole company value, we may well be
bound by the previously agreed value for goodwill. In this
situation you should obtain any PSV file that was created in
respect of the goodwill valuation. The value of the company is not
necessarily arrived at by simply adding the goodwill value to the
value of the net tangible assets, if that entirety value is not
supported by earnings.
In some instances, a value for goodwill could only be
achieved by selling off the benefit of the trade away from the
other assets of the business, leaving only a shell out of which
costs of consequent redundancies/liquidations have to be met.
Deduction for those could be a legitimate reduction from the total
value of the separate assets, including goodwill.
Where the valuation is of
shares and there is an element of goodwill to be
taken into account, the valuation will be dealt with by the share
valuer, not the Goodwill Team. However, the Goodwill Team is happy
to advise on unusual goodwill points.
| Additional Guidance: SVM150000 |
