There is no statutory definition of ‘trade’. The only statutory reference to the term is that ‘trade’ includes a ‘venture in the nature of trade’. This absence of a formal definition decides if an activity is a trade more difficult. However, over time the courts have set some established guidance. <\/p>\n
It is clear from the significant amount of case law on this subject that a decision on whether there is a trade is a grey area. However, even having established that a trade, or a venture in the nature of trade, exists, the next question to consider is the scope of that trade.<\/p>\n
HMRC’s internal guidance on this matter states as follows:<\/p>\n
In many cases the nature and extent of a particular trade is never explicitly considered. This is particularly the case where there is no dispute about the nature of the trade, whose scope is implicitly understood and accepted.<\/em><\/p>\n However, the scope of a particular trade is fundamental when questions arise concerning:<\/em><\/p>\n One trader’s sale, or purchase, of a fixed capital asset may be another trader’s sale, or purchase, of trading stock.<\/em><\/p>\n There is no statutory definition of \u2018trade\u2019. The<\/p>\n","protected":false},"author":1,"featured_media":5715,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[166,1],"tags":[],"acf":[],"yoast_head":"\n\n