CTA09/PART8/S715

Definition

The statute provides that ‘goodwill’ carries the same meaning as it does ‘for accounting purposes’, i.e. the legislation follows the definition ascribed under ‘GAAP’. These terms are defined in CTA10/S1127 (see CIRD30020).

As a matter of accountancy, goodwill is simply the difference between the price at which a business changes hands and the aggregate value of the individual assets of that business after deducting the value of the liabilities taken over.

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