Commentary

I8.353 Methods of valuing goodwill

IHT, trusts and estates

I8.353 Methods of valuing goodwill

I8.353 Methods of valuing goodwill

Having arrived at a maintainable trading profit before income tax, there are usually two ways of valuing the goodwill. The first is to deduct the current net value of the tangible trading assets from the overall value arrived at by capitalising the maintainable profit1, and the second is to capitalise the super profit. The former method is the most appropriate and will usually apply unless there is a particular customised method. The latter method has been deemed by HMRC Shares and Assets Valuation to only be appropriate for small businesses. On the capitalisation basis, no

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