The method in which an asset is acquired may be important in determining the tax treatment. If the asset was purchased the market in which it was acquired and correspondence relating to the acquisition could indicate whether it was being bought for resale or as an investment.
The importance of establishing intention at the time of acquisition has already been emphasised (see B1.406). Land that has been inherited or acquired by gift is unlikely to give rise to trading profits unless it can be shown there was a change in the intention post acquisition. In Davies1
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