Value Added Tax, badges of trade

Under the self-assessment system the question of whether a business is, or would be trading, is decided initially by the owner itself. However, sometimes it is difficult to decide if the activities would be assessed to income tax or not. Badges of trade are important because can help analyse if the transaction should be taxed per Income Tax principals.
First badge, called subject matter of the transaction, aim to analyse the natures of the goods involve in a transaction. That can help establish if the transaction is an investment, goods are bought for own use or it is a stock in trade. We have to justify that the assets was bought for any other purpose then sell it. In your case the cars which you bought cannot be treating as an investment and they are not use by you or your family. That can indicate there are bought for trading transitions.
Second test is the length of the period of ownership. If the asset bought is retained by the new owner for extended period of time, it indicates that the asset could have been bought for personal use of the buyer. Cars which you are buying are kept by you for the time needed to do an improvement, and then cars are sold. Using this badge we can deduct that the length of time you own the assets indicates trading intentions.
The next badge is frequency or number of similar transaction by the same person. Situation when the transaction is more frequent will be regarded as trading. In your case, sales commitment of one car triggers buying another one. There is no information exactly how many cars and how often you are selling them, but I can designate that it is repeating transaction, which point to a trading.
Another badge is supplementary work and marketing. This badge treats about any work added and modifications to improve the assets have been done by the owner. In situation when we are doing any improvement to the asset which make it more attractive to the buyer, it is possible that the transaction will be treated as a