Commentary

B1.409 Method of sale

Business tax
Business tax | Commentary

B1.409 Method of sale

Business tax | Commentary

B1.409 Method of sale

Transactions in borderline cases of trading must be compared with the way traders in the relevant asset work. If the transaction is conforms in manner and style to such 'normal' trading transactions then a conclusion of trading is likely1.

A key pointer to trading is the existence of a sales organisation. In Martin v Lowry2, a person who had never had any connection with the linen trade purchased the whole of the Government's surplus stock of aeroplane linen. The taxpayer then embarked upon an extensive advertising campaign, rented offices and engaged employees

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