The question was whether sub-underwriting commissions received by the Trustees are chargeable to tax under Case I of Schedule D and whether they are also liable to the additional rate of tax applicable to trusts. The investment managers appointed to manage the huge scheme assets were allowed to sub-underwrite their duties, and accounted for their commissions. The sub-underwriting was seen as a normal part of the investment management process, not itself as a means of making money. Was there a trade? It had all the hall marks of a trade. The intention of the party can be a relevant factor, but not overwhelming. In this case this was trading activity.
Times 16-Oct-1998,  EWHC Ch 296
Income and Corporation Taxes Act 1988 Sch D Case 1
Cited – Ransom v Higgs 1973
These lists may be incomplete.
Updated: 23 December 2020; Ref: scu.135880