Appeal from the Decision of Lightman J of 14 October 1998 (Click here)Sub-underwriting activities of the Post Office and British Telecom Pension schemes did not constitute trading within Case I of Schedule D. Instead, the sub-underwriting itself formed an integral part of the schemes’ investment process and took its colour therefrom. Accordingly the sub-underwriting commission was income chargeable under Case VI of Schedule D, but exempted by s.592(3) ICTA 1988.In the context of s.686(2)(c) ICTA 1988, the word ‚Äö√Ñ√∫property‚Äö√Ñ√π was not wide enough to encompass a trade. Therefore, s.686(2)(c) did not exempt pension fund trading income from the additional trade of tax applicable to trusts.Michael Flesch KC and Felicity Cullen appeared for the pension fund trustees