Commentary

B1.615 What constitutes a discontinuance?

Business tax
Business tax | Commentary

B1.615 What constitutes a discontinuance?

Business tax | Commentary

Discontinuance of a trade

B1.615 What constitutes a discontinuance?

Whether or not a trade has been discontinued is a question of fact1.

Thus, in Hillerns & Fowler2 a partnership expired by lapse of time on 31 March 1926, and the dissolution was announced to customers by a circular letter of that date and to the public by advertisement in the London Gazette on the following 8 April. On 31 March 1926, the firm held some trading stock, and after that date further stock, which had been contracted for, was received. The stock thus held and acquired was delivered to customers in fulfilment of contracts which were made before 31 March, but no new contracts either of purchase or of sale were made after that date. The Special Commissioners found that the firm was trading during 1926–27 and the court held that there was evidence to support the finding3.

In T J Moore4 it was held that a self-employed musician, who had begun working as a peripatetic music teacher when his income from work as a touring musician declined, was continuing to trade as a musician despite the fact that, in the year in question, 94% of his trading income derived from his work as a music teacher.

A contrasting decision was reached in Bhadra5, where a doctor had been erased from the register of medical practitioners. The First-tier Tribunal held that he had ceased to carry on a trade or profession as a doctor,

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