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HMRC internal manual

Business Income Manual

Financial traders - instruments and shares: avoidance cases

Some avoidance schemes depend for their success, at least in part, in showing that a trade of financial dealing exists. Advice on the particular scheme involved should always be sought from CTISA (AAG), but in addressing the question of whether a trade is being carried on, you follow the same principles set out in this guidance.

Even if it is accepted that a trade is being carried on, there will be a question of whether a particular transaction of that trade is itself a trading transaction. In this situation, you need to apply the principles set out in BIM20105 and consider whether the transaction is a commercial one or one carried out for a fiscal purpose. Further guidance is available from CTISA (Financial Products Team) in such cases.