The way in which the sale is secured is relevant. Any form of
organised activity designed to promote a sale is evidence in favour
of trading.
For example, a sales campaign by advertisement or canvass or
the organisation or employment of a selling agency or sales staff.
In Martin v Lowry [1926] 11TC297 the individual bought a very
large quantity of linen with the intention of reselling it at a
profit. In the course of this activity he set up a large and
skilled organisation for disposing of the linen in smaller
quantities including the establishment of a sales office; the
employment of staff and an expert in linen; and an extensive
advertising campaign. This sales organisation was an important
factor in the Commissioners' decision that he was trading, a view
with which the courts agreed.
The absence of the normal business systems and structures
that would be expected of a trader dealing in the particular asset
may be a pointer against trading.
