Commentary

I8.339 Partnership goodwill

IHT, trusts and estates

I8.339 Partnership goodwill

I8.339 Partnership goodwill

Goodwill is prima facie included in the 'assets', 'property', 'effects' or 'stock' of a partnership and must be paid for by the continuing partners if they purchase the share of a retiring or deceased partner, in the absence of a prior agreement to the contrary1.

The valuation of goodwill is treated at I8.351–I8.354 inclusive. When a partnership is being set up, it is important to consider whether partners should be entitled to an interest in goodwill on death before retirement, or whether it should accrue to the other partners without payment. If it is provided that in such

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