Part 22

Miscellaneous provisions
Chapter 8

Exemptions

Health service bodies

NHS foundation trusts
987
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.