BIM14080 - Schedule D: Trade, professions and vocations

Case I applies to the annual profits or gains arising from any trade, whether carried on in the UK or elsewhere, which is either-

• carried on in the UK by any person, whether resident here or elsewhere, or
• carried on partly abroad by a UK resident.

If a non-resident carries on a trade in the UK the Case I charge is limited to the profits or gains from trading in the UK. In other words, the profits derived by the non-resident from trading outside the UK are not chargeable.

If a resident of the UK carries on a trade wholly abroad the words of ICTA88/S18 (3) may suggest that profits from it are within Case I. However, it is established law that such profits are not within Case I but, instead, are liable under Case V on income from a foreign possession.

The treatment of profits from trading within the UK by non-residents is dealt with in more detail in INTM260000 onwards.