LORD DE CLIFFORD
asked Her Majesty's Government:
Whether the issue of a breeding licence under the Breeding of Dogs Act 1973 will give the recipient and his premises the status of a commercial undertaking for such matters as tenancies, mortgages and taxation, where previously such activity had been classed as a hobby.
VISCOUNT COLVILLE of CULROSS
For tax purposes, the question whether or not a trade is being carried on turns on what activities are actually taking place and how they are organised and not on what activities may be authorised by a licence or other permission. Matters relating to tenancies and mortgages are for determination between the parties concerned in accordance with the terms of their contracts, but I should expect that similar considerations would apply.