Sometimes funding for activities that are carried out by a local authority under statutory powers comes from a mixture of grants, donations and fees and charges, including ‘statutory contributions’, from private individuals or businesses.

The points below are intended as a general guide in distinguishing between business and non-business activities where income is received from private individuals or businesses. It cannot, however, cover every eventuality because of the wide range of such activities.

(1)Where monies are given freely towards an activity and the donor receives nothing tangible in return, the activity can be treated as non-business.

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