MR T wrote:
SUSSEX....Ask the tax man about GOODWILL ALLOWANCE when somebody sells a plate,, oops sorry I forgot you do not pay tax....mrT.. :roll:
In Royden the judge referred to the use of the term goodwill by the Inland Revenue, but then went on to say:
However, unlike the normal case of "goodwill" as a business asset, this 'premium' does not arise out of the fact that Mr Royden has built up a reputation or has an established clientele, as might be the case of a business such as a restaurant. The 'premium' arises simply because of the restriction on the number of hackney carriages authorised to ply for hire in the Wirral area. In other words, it is simply the reflection of the value of the local monopoly enjoyed by the existing hackney carriage proprietors and drivers. Presumably, the transferee's willingness to pay such a premium results from his estimation of the future profits he hopes to be able to make from the business thus protected. Thus while the IR may use the term, it's just a description and has no real basis in relation to commercial realities, the IR just use it for capital gains tax purposes, its description is meaningless.
It's amazing that people like T. seem to think they know so much about business, but what they are clearly talking about is more of a cartel than a proper business, and also perhaps explains why the don't know the proper meaing of goodwill.
A more accurate term is 'excess profits'. :D
"Excess profits" and taxi trade, never seen those put together before, how many multi millionaire taxi drivers are there?
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