Part 22Miscellaneous provisions
Chapter 8Exemptions
Health service bodies
985Health service bodies
1
A health service body is not liable to corporation tax.
2
Subsection (1) is subject to any order made under section 987.
3
See section 986 for the meaning of “health service body”.
986Meaning of “health service body”
In section 985 “health service body” means a body mentioned in the following table—
Body | Provision under which body established |
---|---|
the Common Services Agency for the Scottish Health Service | section 10 of the National Health Service (Scotland) Act 1978 |
a Health and Social Services Board | Article 16 of the Health and Personal Social Services (Northern Ireland) Order 1972 (S.I. 1972/1265 (N.I. 14)) |
a Health and Social Care trust | Article 10 of the Health and Personal Social Services (Northern Ireland) Order 1991 (S.I. 1991/194 (N.I. 1)) |
a Health Board | section 2(1)(a) of the National Health Service (Scotland) Act 1978 |
a Local Health Board | section 11 of the National Health Service (Wales) Act 2006 |
a National Health Service trust | section 25 of the National Health Service Act 2006 or section 18 of the National Health Service (Wales) Act 2006 |
an NHS foundation trust | section 30 of the National Health Service Act 2006 |
the Northern Ireland Central Services Agency for the Health and Social Services | Article 26 of the Health and Personal Social Services (Northern Ireland) Order 1972 (S.I. 1972/1265 (N.I. 14)) |
a Primary Care Trust | section 18 of the National Health Service Act 2006 |
the Scottish Dental Practice Board | section 4 of the National Health Service (Scotland) Act 1978 |
a special health and social services agency | Article 3 of the Health and Personal Social Services (Special Agencies) (Northern Ireland) Order 1990 (S.I. 1990/247 (N.I. 3)) |
a Special Health Authority | section 28 of the National Health Service Act 2006 or section 22 of the National Health Service (Wales) Act 2006 |
a Special Health Board | section 2(1)(b) of the National Health Service (Scotland) Act 1978 |
a Strategic Health Authority | section 13 of the National Health Service Act 2006 |
987NHS foundation trusts
1
The Treasury may by order provide that an NHS foundation trust (see the table in section 986) is liable to corporation tax in relation to a specified activity or class of activity.
2
The Treasury may make an order under subsection (1) only—
a
in relation to an activity or class of activity that appears to the Treasury to be of a commercial nature, and
b
if the condition in subsection (3) is met.
3
The condition is that the making of an order appears to the Treasury to be expedient for the purpose of avoiding, removing or reducing differences between—
a
the tax treatment of the body undertaking the activity, and
b
the tax treatment of another body or class of body which is of a commercial nature and which undertakes or might undertake the same or a similar activity.
4
For the purposes of subsection (2)(a) an activity authorised under section 43(1) of the National Health Service Act 2006 is not to be treated as an activity of a commercial nature.
5
An order under subsection (1) must make provision for determining the amount of the profits relating to an activity that are to be charged to corporation tax as a result of the order.
6
An order under subsection (1) may in particular—
a
make provision for disregarding profits of less than a specified amount in respect of a relevant period,
b
make provision for disregarding a specified part of profits in respect of a relevant period, or
c
make provision for disregarding all or part of profits relating to activity for which receipts or turnover (as defined by the order) are less than a specified amount in respect of a relevant period.
7
“Relevant period” means—
a
a financial year or accounting period, or
b
a specified part of a financial year or accounting period.
8
An order under subsection (1)—
a
may apply, with or without modification, a provision of the Tax Acts,
b
may disapply a provision of the Tax Acts,
c
may make provision similar to a provision of the Tax Acts, and
d
may make provision generally or in relation to a specified body or class of bodies.
9
No order may be made under subsection (1) unless a draft of the statutory instrument containing it has been laid before and approved by a resolution of the House of Commons.