ABSTRACT

Schedule D Case I assesses tax on the annual profits or gains arising from any trade carried on in the UK or elsewhere (see s 18 of the TA 1988). The expression ‘trade’ has been defined inclusively as ‘every trade, manufacture, adventure or concern in the nature of trade’ (s 832 of the TA 1988). Although a trade ordinarily involves the regular buying and selling of property, it is wrong to assume that an isolated or casual transaction may not be liable to income tax under Schedule D Case I. Such an activity may involve an ‘adventure in the nature of a trade’ or alternatively, an accretion to capital liable to capital gains tax. Which tax regime is applicable may still be significant in determining the status of an isolated profit. In cases of doubt, the Revenue may raise alternative assessments.