Commentary

B1.415 Profits applied to particular purposes

Business tax
Business tax | Commentary

B1.415 Profits applied to particular purposes

Business tax | Commentary

Destination of profit

B1.415 Profits applied to particular purposes

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

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