Section 37: Corporation Tax: Health Service Bodies: Exemption
Summary
1.Section 37 amends section 986 of the Corporation Tax Act 2010 (CTA 2010). The amendment ensures that certain health service bodies created (the new bodies) by the Health and Social Care Act 2012 (the Act) will be exempt from Corporation Tax (CT).
Details of the Section
2.Subsection 1 adds the new bodies at the appropriate place in section 986 CTA 2010. Section 986 provides the meaning of “health service body” for the purposes of the exemption from CT contained in section 985 of that Act.
Background
3.The Act is making significant changes to the structure of the National Health Service (NHS) in England. Some existing bodies, such as Primary Care Trusts, are to be abolished and new bodies established; other bodies will change their status (from special health authority to Non-Departmental Public Bodies). Subject to specific legislation these new bodies would be liable to CT.
4.The predecessor bodies were generally exempt from CT, as they were either part of the Department of Health or had specific exemption by virtue of sections 985 and 986 CTA 2010.
5.This section introduces legislation to similarly exempt the new bodies from CT.
