It is sometimes suggested that a business, especially a
profession, is defined by its title. The argument is that so as
long as a profession is carried on by the same person (especially
one possessing professional qualifications) it is the same
profession, irrespective of whether or not the circumstances and/or
location in which it is carried on are the same. So, for example, a
qualified dentist carries on the same profession throughout his or
her professional life.
This argument is incorrect. It is inconsistent with Seldon v
Croom-Johnson [1932] 16TC740 at page 746, which recognises that
some, though not all, businesses are ‘local’ and also
rejects the identification of a business by a verbal label. It is
also inconsistent with Viscount Simon’s dictum in Rex v
General Commissioners of Income Tax for the City of London (ex
parte Gibbs and Others) [1942] 24TC221 at page 239 which recognises
that it is possible to succeed to some professions, (see
BIM54065 - Dentists: successions).
Succession (
BIM70620) would be impossible if the
person who left a business continued to carry on the same
profession (aside from partnerships, two people cannot carry on the
same profession for tax purposes).
