BIM70535 - Business changes: one trade or more than one trade: companies

Since the case of Cannon Industries Ltd v Edwards [1965] 42TC625 there has been a presumption that a company carries on only one trade. The activities carried on by a company are only likely to amount to more than one trade if:

• one activity is so different in nature from the other that it can be seen as quite separate; and
• the activities are separately organised and managed right up to Board level.