Losses which had been incurred in speculative non-commercial trading in shares and commodities were not ‘trade’ losses for income tax purposes, even though the tax payer intended to become involved in fund management as a career, and had intended these activities to be a commercially successful series. The taxpayer had claimed up to sixteen calls a day to his broker, but had made only 20 or so trades year. He had in one year declared on his tax return that he had had no profit or loss in trading in that year. The commissioner’s finding that there had been ‘no commercial organisation’ to his activities was not fully understood, but was not so wrong in law or fact as to be capable of being set aside.
Judges:
Robert Walker J
Citations:
Times 11-Apr-1996
Statutes:
Income and Corporation Taxes Act 1988 380, Income and Corporation Taxes Act 1970 168(1), Finance Act 1978 30(4)
Jurisdiction:
England and Wales
Income Tax
Updated: 06 August 2022; Ref: scu.90291
