Goodwill is still a difficult area when it comes to analysing the CGT and stamp duty consequences to dealings in it. The nature of goodwill has not been fully explained or explored in Murry or other cases.
Specifically, can the assignment of goodwill now be made without any transfer of the sources of goodwill? If goodwill is now to be conveyed only as an asset that inheres in other business assets, which specific business assets and in what proportions, will the goodwill of a business inhere? The revenue law implications are as follows:
- when does a CGT event happen to goodwill? Which CGT events (other than A1 and B1 and C2) can apply to it, and how does it do so?
- how does Sub-section 71E(1) of the Stamp Duties Act apply if the conveyance of assets do not carry with them any components of a business?
- what about personal goodwill? Since that is inherently incapable of conveyance, does any payment for it trigger CGT event D1 or H2?