Commentary

40.1 Taxation of trading profits and losses

BUSINESSES vol 4(2) start-up, sale and purchase
| Commentary

40.1 Taxation of trading profits and losses

| Commentary

(h) Conclusion to taxation of the business

40 Conclusion

As can be seen from the above discussion, the tax provisions relating to businesses are complex and a decision as to which type of business vehicle will be the most tax effective in any individual case will involve a thorough consideration of the personal circumstances of the proprietors and their objectives in becoming involved in the business on a case-by-case basis. It is possible however to propose some general principles.

40.1 Taxation of trading profits and losses

The profits of a sole trade or partnership are taxed to income tax under the Income Tax (Trading and Other Income) Act 2005,

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