Income Tax (Trading and Other Income) Act 2005 section 5

Charge to tax on trade profits

Section 5 establishes that the profits of a trade, profession or vocation are subject to income tax.

• Income tax is charged on the profits of any trade, profession or vocation.
• The definition of "trade" is broad and includes any manufacture, adventure or concern in the nature of trade.
• Even an isolated transaction can fall within the definition of trade if it is in the nature of trade, even if it is not part of an ongoing business.
• This section applies equally to professions and vocations as it does to trades.