Commentary

B1.408 Changes to the asset

Business tax
Business tax | Commentary

B1.408 Changes to the asset

Business tax | Commentary

B1.408 Changes to the asset

If changes have been made to an asset in order to make it more marketable then that is a significant indication of trading1. The nature of the changes that are made is important. Work on the asset that constitutes no more than maintenance or minor repair may be of no significance at all—there must be evidence of an intention to enhance saleability.

On the other hand, the lack of any work on the asset is does not necessarily hamper a conclusion of trading. The asset may not need any modification.

The leading case is that of IRC

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