BIM20060 - Trade: general: definition

The Taxes Acts give very little guidance on the meaning of the word 'trade'. ICTA88/S832 (1), which defines many terms used in the Corporation Tax Acts, says “’trade’ includes every trade, manufacture, adventure or concern in the nature of trade”. ITA/S989 says ‘trade’ includes any venture in the nature of trade.

There is no further statutory help. As a result the courts have established for themselves what amounts to a 'trade', or 'trading', and their decisions provide guidance when the point is in dispute.