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Home / Simons-Taxes /Business tax /Part B1 What is a trade and when does a trade start and finish? /Division B1.4 Identifying a trade /Is there a trade? / B1.408 Badges of trade—changes to the asset
Commentary

B1.408 Badges of trade—changes to the asset

Business tax

If changes have been made to an asset in order to make it more marketable then that can be an indication of trading1. The nature of the changes that are made is important. Work on the asset that constitutes no more than maintenance or minor repair may be of no significance at all—there must be evidence of an intention to enhance saleability.

On the other hand, the lack of any

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