Commentary on Sections Overview Overview Section 35: Charge to tax on trade profits
154.This section applies the corporation tax charge on income to the profits of a trade. It is based on section 18 of ICTA. The corresponding rule for income tax is in section 5 of ITTOIA.
155.The section does not rewrite the reference to “profession or vocation” in Schedule D Case II. See Change 2 in Annex 1.
156.Section 832(1) of ICTA provides that “trade” includes “every trade, 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.