ICTA88/S18 (1)(a)(ii) provides that tax is charged on the annual
profits or gains arising or accruing ‘from any trade,
profession or vocation, whether carried on in the UK or
elsewhere’.
The legislation does not define 'profits or gains'. In Ryall
v Hoare [1923] 8TC521, a Case VI Schedule D case concerning the
taxability of commission received by a company director for
guaranteeing the company’s overdraft, at page 525 Rowlatt J
described profits or gains as
“…something which is in the nature
of interest or fruit, as opposed to principal or
tree”.
