3

The Treasury may by order disapply subsection (1)(b) in relation to a specified activity, or class of activity, of an NHS foundation trust.

4

An order under subsection (3) shall 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 disapplication of subsection (1)(b).

5

An order under subsection (3) may, in particular—

a

make provision for disregarding profits of less than a specified amount in respect of a financial year or accounting period or a specified part of a financial year or accounting period;

b

make provision for disregarding a specified part of profits in respect of a financial year or accounting period or a specified part of a financial year or accounting period;

c

make provision for disregarding all or part of profits relating to activity in respect of which receipts or turnover (as defined by the order) are less than a specified amount in respect of a financial year or accounting period or a specified part of a financial year or accounting period.

6

An order under subsection (3)—

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.

7

The Treasury may make an order under subsection (3) only—

a

in relation to an activity or class of activity that appears to the Treasury to be of a commercial nature,

b

where it appears to the Treasury to be expedient for the purpose of avoiding, removing or reducing differences between—

i

the fiscal treatment of the body undertaking the activity, and

ii

the fiscal 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, and

c

if a draft has been laid before, and approved by resolution of, the House of Commons.

8

An activity authorised under section 14(1) of the Health and Social Care (Community Health and Standards) Act 2003 shall not be treated as an activity of a commercial nature for the purposes of subsection (7)(a).