The TACS Partnership looks at the distinction between a trade and a business for certain tax purposes.
The terms ‘business’ and ‘trade’ are often used interchangeably, implying the same meaning. In many cases, it doesn’t matter which term is used.
However, for tax purposes the distinction can be vital.
Neither one thing nor the other
Before considering if there is a business or trade, it may be necessary to initially consider whether an activity falls into either category.
For example, some individuals have hobbies that generate money, such as buying and selling items at car boot sales at weekends, or on eBay.
It is perhaps understandable that such
