BIM15020 - 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.