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HMRC internal manual

Business Income Manual

From
HM Revenue & Customs
Updated
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Trade profits: general principles

The UK Courts have been applying our Income Tax law since, broadly, the latter part of the nineteenth century. These decisions have produced case law which helps the application of the statute in similar situations. In addition, principles of wider application have evolved. Principles relevant to trade profits are discussed as follows:

Distinction between capital and revenue BIM15025
   
The source doctrine BIM15035

The principles apply equally to the trade profits of companies.