... off purchase and sale of land) I accept this as it follows the badges of trade to the letter and takes into account all aspects of the case. It's clear that the transaction was merely an investment and thus would not be taxable as a trade under ITTOIA (schedule D). Later cases present more of a problem. In regards to Ensign Tankers Ltd v Stokes, it was held by the commissioners that there was not a trading transaction taking place. On appeal to the court of appeal this decision was turned around and a trading transaction was held to be taking place. This however only took into account the single transaction the allowance was being claimed on. Upon going to the House of Lords a different view was taken. They stated that the case dealt with tax avoidance and thus the entire set of transactions was looked at (Ramsey principle). They ...

See this essay or coursework document in full right now