Goodwill V Assets

[alig31]

Hi,

As a purchaser of a business, am I correct in saying that it is more beneficial for me to have the asking price for the business apportioned as the maximum value for the Assets and the minimum for Goodwill, and this the opposite for the .

Thanks in advance

Allan G

[section 44]

is goodwill not an asset?

[alig31]

yes an intangible asset but cant be measured for business value as such

[section 44]

In short, no. It would depend on the specific circumstances and, in any event, typically consideration should be apportioned on a just and reasonable basis.

Goodwill and (other) assets may equally be within the scope of tax on chargeable gains for the vendor. The key point for the vendor would be the vendor's tax base cost (broadly, cost of acquisition together with associated costs) in the relevant assets and the availability of any reliefs or exemptions.

From a purchaser's perspective, a purchaser may be able to amortise goodwill and claim a tax deduction for such amortisation. (Other) assets may qualify for capital allowances.