Stamp Duty Land tax (SDLT) Technical News (formerly Newsletter) Issue 3 - September 2006

Goodwill

Our helpline continue to receive many queries about goodwill, which they are unable to answer.

As mentioned in the previous edition (PDF 136K), issues relating to the categorisation of goodwill, or the valuation of free goodwill where an apportionment is required require specialist advice and should be referred to the Valuation Office Agency (VOA).

For example the VOA rather than staff on our Helpline have the expertise to decide how much of a hotel's goodwill is due to its location (inherent goodwill, part of the land) and how much is due to its reputation (something else).

They can also offer advice on such questions as to whether the reputation of a hotel can be transferred (involving the personality and skills of staff) and is that chargeable and whether the expertise of a chef connected to a restaurant is chargeable.

SDLT: Guidance on Paragraph 2(4A) of Schedule 7, Finance (No 2) Act 2003

Practitioners should note that Paragraph 2(4A) of Schedule 7 Finance Act 2003, inserted by paragraph 19 of Schedule 10, Finance (No 2) Act 2005, introduces new restrictions on the availability of SDLT group relief under Schedule 7, F.A. 2003.

Previous issues of the Technical Newsletter

Material in earlier Technical Newsletters was current at the time of publication but may become outdated or incorrect with the passage of time. Such material should not therefore be relied on as a permanent source of guidance.