BIM15020 | Trade profits: general principles

From HM Revenue & Customs · Business Income Manual

The UK Courts have been applying our Income Tax law since, broadly, the latter part of the nineteenth century. These decisions have produced case law which helps the application of the statute in similar situations. In addition, principles of wider application have evolved. Principles relevant to trade profits are discussed as follows:

Distinction between capital and revenue
The source doctrine

The principles apply equally to the trade profits of companies.