(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”.
In section 985 “health service body” means a body mentioned in the following table—
| Body | Provision under which body established |
|---|---|
| F1. . . | F1. . . |
| the Common Services Agency for the Scottish Health Service | section 10 of the National Health Service (Scotland) Act 1978 |
| F2. . . | F2. . . |
| 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 |
| [F3an integrated care board | section 14Z25 of the National Health Service Act 2006] |
| F4. . . | F4. . . |
| 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 |
| F5. . . | F5. . . |
| a Primary Care Trust | section 18 of the National Health Service Act 2006 |
| [F6the Regional Agency for Public Health and Social Well-being | section 12(1) of the Health and Social Care (Reform) Act (Northern Ireland) 2009 |
| the Regional Business Services Organisation | section 14(1) of the Health and Social Care (Reform) Act (Northern Ireland) 2009] |
| 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 |
| [F7[F8NHS England] | section 1H of the National Health Service Act 2006] |
| [F7National Institute for Health and Care Excellence | section 232 of the Health and Social Care Act 2012] |
Textual Amendments
F1Words in s. 986 omitted (1.7.2022) by virtue of Health and Care Act 2022 (c. 31), s. 186(6), Sch. 4 para. 172(a); S.I. 2022/734, reg. 2(a), Sch. (with regs. 13, 29, 30)
F2Words in s. 986 omitted (30.11.2022) by virtue of The Health and Social Care Act (Northern Ireland) 2022 (Consequential Amendments) Order 2022 (S.I. 2022/1174), arts. 1(2), 11(a)
F3Words in s. 986 inserted (1.7.2022) by Health and Care Act 2022 (c. 31), s. 186(6), Sch. 4 para. 172(b); S.I. 2022/734, reg. 2(a), Sch. (with regs. 13, 29, 30)
F4Words in s. 986 omitted (1.2.2023) by virtue of The Health and Social Care Information Centre (Transfer of Functions, Abolition and Transitional Provisions) Regulations 2023 (S.I. 2023/98), reg. 1(2), Sch. para. 15 (with reg. 3)
F5Words in s. 986 omitted (30.11.2022) by virtue of The Health and Social Care Act (Northern Ireland) 2022 (Consequential Amendments) Order 2022 (S.I. 2022/1174), arts. 1(2), 11(b)
F6Words in s. 986 inserted (30.11.2022) by The Health and Social Care Act (Northern Ireland) 2022 (Consequential Amendments) Order 2022 (S.I. 2022/1174), arts. 1(2), 11(c)
F7Words in s. 986 inserted (17.7.2013) by Finance Act 2013 (c. 29), s. 37
F8Words in s. 986 substituted (1.7.2022) by Health and Care Act 2022 (c. 31), s. 186(6), Sch. 1 para. 13; S.I. 2022/734, reg. 2(a), Sch. (with regs. 13, 29, 30)
(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.