A new HM Revenue and Customs (HMRC) policy on non-business activities could negatively impact charities, the tax authority has admitted.
New two-stage approach
Under the new approach, HMRC will no longer apply the “business test” based on six criteria from the cases of Lord Fisher [1981] STC 238 and Morrison’s Academy [1978] when deciding whether an income and associated income is related to a business activity.
Source: civilsociety
