HMRC fails to tax 'personal goodwill'

The decision in a recent case brought by taxpayers against HMRC is in line with a widely held view that ‘personal' goodwill introduced into a limited liability partnership (LLP) as part of the transfer of a business is not taxable, says Camilla Taylor, associate director at RSM. The case involved the transfer of a financial advice and services business from a company (Simpsons Independent Financial Advisors Ltd, ‘SIFA') to an LLP (Simpsons Wealth Management LLP, ‘SWM') under a business transfer agreement. The agreement provided for the transfer of the business as a going concern and the ...