A1.136 Trading income

A1.136 Trading income

ITTOIA 2005, Pt 2 has rewritten the provisions (so far as income tax is concerned) for the profits of trades, professions and vocations and those activities (such as farming) that are taxed as trades; see Part B2. Part 2 also incorporates the rules relating to overseas trades.

The question of what constitutes trading is a mixed question of fact and law1. Where a person acquires an existing trade, he is usually treated as commencing a new trade, but this situation must be distinguished from cases where he is merely extending a trade, which he is already carrying on2.

There

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