Valuation of non personal goodwill

MarieNoelleMarieNoelle Trusted RegularHampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,020
Hi all,
I have a sole trader, a well established interior designer, who incorporated in 2016/17. I believe most of the goodwill is personal but in the last couple of years she has used subcontractors who work under her brand name (generating over 10% of her profits). This make me think there is an element of non personal goodwill but I am struggling to find an "approved" method that would satisfy HMRC. The amount of goodwill is likely to be under the annual CGT allowance so I was going the CG34 route rather than a professional valuation.
I would welcome any pointers.


  • readerreader Experienced Mentor MAAT, AAT Licensed Accountant Posts: 673
    The are many different ways to value a business, e.g. net assets on balance sheet, 1.5 x turnover, 3 - 5 x profit, etc.

    Why are you valuing? To create a CR in the DLA?

    If the value is greater than AE will you claim ER?

    I believe the amortization of the GW is not allowable for CT.
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