Destination of profitB1.415 Profits applied to particular purposesIf it is a fact that a trade is being carried on, it makes no difference for tax purposes that the profit has to be applied to a particular purpose, whatever that purpose may be. The tax attaches to the profit when the profit has been made, unless it is an exempted profit1. Thus, in Mersey Docks and Harbour Board v Lucas2, the harbour board which had been constituted by statute for the purposes of owning and maintaining docks and harbours, was held to be liable to tax in respect
If it is a fact that a trade is being carried on, it makes no difference for tax purposes that the profit has to be applied to a particular purpose, whatever that purpose may be. The tax attaches to the profit when the profit has been made, unless it is an exempted profit1. Thus, in Mersey Docks and Harbour Board v Lucas2, the harbour board which had been constituted by statute for the purposes of owning and maintaining docks and harbours, was held to be liable to tax in respect
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.