Commentary on Sections Overview Overview Section 5: Charge to tax on trade profits
43.This section charges the profits of a trade, profession or vocation to tax. It is based on section 18(1) and (3) of ICTA.
44.Part 2 of Schedule 4 to this Act defines “trade” by reference to section 832(1) of ICTA. Section 832(1) of ICTA defines trade so as to include every “manufacture, adventure or concern in the nature of trade”. This brings within the meaning of trade an isolated transaction (or a small number of transactions) which, while in the nature of trade, is not sufficiently extensive to amount to a trade.