Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Casual attitude

08 March 2016
Issue: 4541 / Categories: Tax cases , Admin

C Lucy (TC4878)

Was a trade carried out on a commercial basis?

The taxpayer claimed to have a car hire business and a trade in foreign exchange. He incurred losses from those activities and sought to set them against his other income. HMRC refused saying he had not carried on a trade commercially (ITA 2007  s 66).

The First-tier Tribunal accepted that the hiring of his car for one wedding in 2000 and its use as a prop by Pinewood Studios had constituted a trade. However the car was stolen in 2001 and between that year and 2006 he did not carry on the activity. Further the loss-making nature of his arrangement with Pinewood Studios and the absence of any other wedding business indicated that his trade was casual and had no commercial basis.

For the years 2006 to 2009 the taxpayer’s car hire activities had been as an...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon