Carrying on a trade?: N Henderson v HMRC [2023] UKFTT 281 (TC) (8 March 2023) is a classic case of whether an individual buying and selling shares is carrying on a trade or merely making investments. As so often happens the taxpayer wanted to be treated as a trader because he had lost money in his share dealing during the years in question and sought to claim relief for trading losses against his other income. The FTT had no difficulty in deciding that he was not trading: this is a matter of evidence and there was little here to support the taxpayer’s contention that he was doing anything more than the normal activities of managing a mixed portfolio of shares. Its conclusion was clear: ‘We acknowledge of course that people do embark on trades with high hopes which may not be realised. However in this...
