½Û×ÓÊÓƵ

V2.203 Meaning of business—the business test and development of HMRC policy

This paragraph considers the indicia of business activities derived from the Lord Fisher¹ case and the development of HMRC policy.

For an overview of VAT and business more broadly, see V2.201B.

HMRC policy² has developed and has been influenced by a number of Court decisions. Businesses cannot rely on the business test indicia derived from the Lord Fisher³ case to decide whether an activity is a business activity or not, although the indicia may help to identify factors which should be considered.

The business test indicia derived from the Lord Fisher⁴ case are as follows.

1. Ìý

   •ÌýÌýÌýÌý Whether the activity is a 'serious undertaking earnestly pursued' or 'a serious occupation not necessarily confined to commercial or profit-making undertakings'.

2. Ìý

   •ÌýÌýÌýÌý Whether the activity is an occupation or function actively pursued with reasonable or recognisable continuity.

3. Ìý

   •ÌýÌýÌýÌý Whether the activity has a certain measure of substance as measured by quarterly or