法律英语词汇“trade”的翻译、意思、用法、释义-法律词典

trade
n. The income tax charge on trading income only applies when there is “a trade” (Income Tax Trading and Other Income Act 2005 s 5). A single transaction can be a trade. If there is no trade, a transaction is likely to be subject to capital gains tax and not income tax. (This gives a lower tax charge.) When deciding whether there is a trade, courts have in the past adopted the formulation of the Royal Commission on the Taxation of Profits and Income (1955 Cmd 9474, 116), which stated that the existence of a trade might be determined by considering six badges of trade, namely:

1. the subject matter of the transaction;

2. the length of period of ownership of the property realized in the transaction;

3. the frequency or number of similar transactions by the same person;

4. supplementary work on or in connection with the property realized;

5. the circumstances that were responsible for the realization;

6. motive.

A more modern approach was followed by the court in Rosemoore Investments v Inspector of Taxes [2002] STC (SCD) 325, in which, in order to determine whether there was a trade, the company’s activities were examined by reference to nine badges of trade:

1. repetition: a one-off transaction can be an adventure in the nature of trade but the lack of repetition points towards there being no trade;

2. whether a transaction is related to the trade of the taxpayer (if so, it is more likely to be a trade);

3. the nature of the subject matter: this is not conclusive but may be a valuable pointer;

4. the way in which the transaction was carried through;

5. the source of finance;

6. whether work was done on the object purchased for resale;

7. whether the object purchased for resale was broken down into lots;

8. whether the purchaser intended to resell at the time of purchase;

9. whether the object purchased and resold provided employment or an income pending resale.

Illegal acts can constitute a trade. In IRC v Aken [1990] 1 WLR 1374 (CA) the Court of Appeal held that prostitution is a taxable trade even though a prostitute cannot enforce her bargains and in the course of carrying on her trade criminal offences had been committed by the taxpayer. Compare profession.