Apportioning for goodwill – RICS view

This month’s CPI Update Issue 66 – March 2009) reports on the Practice Note issued by HM Revenue & Customs on Apportioning the Price Paid for a Business Transferred as a Going Concern. It is pertinent to point out that the RICS is not as one with the Valuation Office Agency in relation to this Practice Note. The RICS states on its website that it has made it clear to the VOA that it does not support the guidance and will continue to seek changes to it. This, of course, necessarily leads to some uncertainty as to the correct approach to the making of such apportionments where SDLT (or other tax) liability is being calculated. Click on RICS Statement on Goodwill to read the RICS view.