In order to bring a concern described in ICTA88/S55 within
Schedule D Case I, it is not necessary to prove that a trade (or
concern in the nature of trade) is being carried on; it is
sufficient that-
a) the commodity or service derived from the land is supplied
(whether in a raw state or after processing) to persons other than
the owner and a charge is made for it;
b) there is 'an adequate degree of business organisation for
the purpose of carrying on the undertaking' (see Scott v Russell
[1948] 30TC394, at page 421); and
c) the revenue arises from the ownership or occupation of
land (see CIR v Forth Conservancy Board [1928] 14TC709).
If the revenue does not arise from the ownership or
occupation of land (for example, where tolls or dues are collected
solely by virtue of a Charter or Act of Parliament), the profits
may be assessed under Schedule D Case I if, exceptionally, they can
be regarded as the profits of a trade etc. Otherwise the profits
should charged under Schedule D Case VI, (see CIR v Forth
Conservancy Board [1931] 16TC103).
