It was previously generally accepted that goodwill may fall into one of four categories:
•Inherent goodwill – this is the goodwill which attaches to the location where the business, typically retail, is carried on. It may be a prime location in a high street, shopping centre, retail park, etc. where the customers know those goods or services are on offer. Those customers will return to those premises regardless of who is the proprietor. The goodwill is therefore inherent in the site and is part of the value of the property itself. It is not therefore regarded as a separate asset in its own right.