The badges or indicators of trading

1. Profit-seeking motive

An intention to make a profit supports trading

2. The number of transactions involved

Systematic and repeated transactions support trade

3. The nature of the goods sold

Are the goods only capable of being turned to advantage by being sold? Or do they yield income, or give enjoyment through pride of ownership?

4. Existence of similar trading transactions

Was this a one-off transaction or part of a pattern that suggests trading?

5. Changes to the goods

Were the goods repaired, modified or improved to sell them more easily?

6. The way the sale was carried out

Were the goods sold in a way that indicates trading, or to raise cash in an emergency?

7. The source of finance

Was money borrowed to buy the goods? Were any profits to be used to repay the loan?

8. Interval of time between purchase and sale

Goods being traded are usually bought then sold quickly

9. Method of acquisition of the goods

Goods acquired by an inheritance, or as a gift, are less likely to be the subject of trade