In Graham Michael Wildin v HMRC (TC03586 – 14 May 2014) the First-tier Tribunal (FTT) found that the goodwill of a professional services firm should be ascertained by applying a multiple to the gross recurring fee income of the firm.
Mr Wildin had disposed of the goodwill in his accountancy firm in 2003. Because the firm had existed before March 1982 the CGT calculation required had to establish the value of the goodwill both in March 1982 and in 2003. HMRC argued that goodwill should be valued by taking Wildin & Co’s gross recurring fees x a multiple minus net assets. Mr Wildin’s case was that the correct basis for the valuation of the goodwill in an accountancy practice was by reference to gross recurring fees to which a multiple should be applied. He argued that buying an accounting practice was...
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In Graham Michael Wildin v HMRC (TC03586 – 14 May 2014) the First-tier Tribunal (FTT) found that the goodwill of a professional services firm should be ascertained by applying a multiple to the gross recurring fee income of the firm.
Mr Wildin had disposed of the goodwill in his accountancy firm in 2003. Because the firm had existed before March 1982 the CGT calculation required had to establish the value of the goodwill both in March 1982 and in 2003. HMRC argued that goodwill should be valued by taking Wildin & Co’s gross recurring fees x a multiple minus net assets. Mr Wildin’s case was that the correct basis for the valuation of the goodwill in an accountancy practice was by reference to gross recurring fees to which a multiple should be applied. He argued that buying an accounting practice was...
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