A taxpayer purchased two large quantities of silver bullion to counter the effects of the devaluation of the pound. His normal occupation was not in that sort of activity. The purchase of the bullion was financed by loans at a high rate of interest in circumstances that made it clear that it was necessary to sell the asset in the short term, to repay the loan and eliminate the interest obligation. As the purchase was done on a short term basis in order to realize profit. There was an adventure in the nature of trade and was therefore assessed as trading profit.
Kindly noted that the above information sources from :
http://www.acca.co.uk/uk/members/technical/advice_support/tax/cases/
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