Do you act in transactions involving trade-related properties such as public houses, hotels, petrol filling stations, cinemas, restaurants, care homes etc, where it is suggested that, for SDLT purposes, part of an acquisition price is to be apportioned to the goodwill of the business? In the past, HMRC has taken the view that it was unlikely that there would be any free-standing goodwill in such businesses to accommodate an apportionment, as the goodwill would be considered to form an inherent part of the value of the property. However, HMRC is changing its view, and has announced the publication of a Practice Note – Apportioning the Price Paid for a Business Transferred as a Going Concern.
In addition to the Practice Note, there is a brief announcement on the HMRC website. See: Goodwill in Trade Related Properties Background Note.