Self-generated goodwill and CGT

When a business is sold as a going concern, self-generated goodwill has to be valued

ONE OF the assets to which a value is assigned when a business is sold as a going concern will often be self-generated goodwill. Several factors need to be considered when determining the base cost of such goodwill for Capital Gains Tax (CGT) purposes, particularly when it commenced before 1 October 2001.

The questions that are usually asked in relation to self-generated goodwill are the following:
– Is it an asset?
– Can time-apportionment be used to determine its valuation date value when it is acquired before 1 October 2001 and, if so, does it have a cost and when does it commence?

Is it an asset?
The word ‘goodwill’ is not defined…