ABSTRACT

Schedule D Cases I and II assess the annual profits or gains arising from a trade, profession or vocation. A trade is partially defined as including ‘every trade, manufacture, adventure or concern in the nature of a trade’. In special circumstances, the court will have regard to the ‘badges’ of trade and case law in order to determine whether a casual transaction amounts to an adventure in the nature of a trade. The expressions, ‘profession’ and ‘vocation’ have not been statutorily defined. Generally, the rules for computing the profits under Cases I and II are the same.