Commentary

I8.354 Valuation of professional goodwill

IHT, trusts and estates

I8.354 Valuation of professional goodwill

I8.354 Valuation of professional goodwill

Professional goodwill1, unlike commercial goodwill, relates mostly to the persons carrying on the practice. Some professions do not generate any goodwill, because the skills involved are too personal and cannot be transmitted to a purchaser2. With most professions which can generate goodwill, the larger the practice the more likely it is that goodwill exists. This is because changes in personnel are less likely to affect the overall profitability where there are, say, 30 partners than where there are only two or three partners—although in the latter case there is often some residual goodwill attaching to

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