3.6.1 Basic principles

A person’s motive in acquiring a property is ascertained at the time that he makes the acquisition:

‘Trading requires an intention to trade: normally the question to be asked is whether this intention existed at the time of the acquisition of the asset. Was it acquired with the intention of disposing of it at a profit, or was it acquired as a permanent investment?’ (Lionel Simmons Properties Ltd (in liquidation) v IR Commrs (1980) 53 TC 461, per Lord Wilberforce at p. 491)

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.