Income and Corporation Taxes Act 1988

[F1519A Health service bodies.U.K.

[F2(1)A health service body shall be exempt from corporation tax.]

(2)In this section “health service body” means—

[F3(a)a [F4Strategic Health Authority [F5established under section 13 of the National Health Service Act 2006]]F6. . . F7. . . ;

(aa)a Special Health Authority established under [F8section 28 of that Act or section 22 of the National Health Service (Wales) Act 2006];]

[F9(ab)a Primary Care Trust;]

[F10(aba)a Local Health Board;]

(b)a National Health Service trust established under [F11section 25 of the National Health Service Act 2006 or section 18 of the National Health Service (Wales) Act 2006];

[F12(bb)an NHS foundation trust]

(c)F13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)a Health Board or Special Health Board, the Common Services Agency for the Scottish Health Service and a National Health Service trust respectively constituted under sections 2, 10 and 12A of the National Health Service (Scotland) Act 1978;

(e)F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f)F15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(g)the Scottish Dental Practice Board; F16 . . .

(h)F17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F18(i)a Health and Social Services Board and the Northern Ireland Central Services Agency for the Health and Social Services established under Articles 16 and 26 respectively of the Health and Personal Social Services (Northern Ireland) Order 1972;

(j)a special health and social services agency established under the Health and Personal Social Services (Special Agencies) (Northern Ireland) Order 1990; and

(k)a Health and Social Services trust established under the Health and Personal Social Services (Northern Ireland) Order 1991.]

[F19(3)The Treasury may by order disapply [F20subsection (1)] 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 [F20subsection (1)].

(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 [F21section 43(1) of the National Health Service Act 2006] shall not be treated as an activity of a commercial nature for the purposes of subsection (7)(a).]]

Textual Amendments

F1S. 519A inserted (17.9.1990) by National Health Service and Community Care Act 1990 (c. 19), ss. 61(1), 67(2); S.I. 1990/1329, art. 2(5)(a), Sch. 2

F2S. 519A(1) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 106(2) (with Sch. 2)

F3S. 519A(2)(a)(aa) substituted for s. 519A(2)(a) (1.4.1996) by Health Authorities Act 1995 (c. 17), s. 2(3), Sch. 1 para. 114(a) (with Sch. 2)

F4Words in s. 519A(2)(a) inserted (1.10.2002) by The National Health Service Reform and Health Care Professions Act 2002 (Supplementary, Consequential etc. Provisions) Regulations 2002 (S.I. 2002/2469), reg. 1, Sch. 1 para. 14

F5Words in s. 519A(2)(a) inserted (1.3.2007) by National Health Service (Consequential Provisions) Act 2006 (c. 43), s. 8(2), Sch. 1 para. 100(a)(i)

F6Words in s. 519A(2)(a) omitted (1.4.2007) by virtue of The References to Health Authorities Order 2007 (S.I. 2007/961), art. 1(1), Sch. para. 19

F7Words in s. 519A(2)(a) omitted (1.3.2007) by virtue of National Health Service (Consequential Provisions) Act 2006 (c. 43), s. 8(2), Sch. 1 para. 100(a)(ii)

F8Words in s. 519A(2)(aa) substituted (1.3.2007) by National Health Service (Consequential Provisions) Act 2006 (c. 43), s. 8(2), Sch. 1 para. 100(b)

F9S. 519A(2)(ab) inserted (1.4.2000 for E.W. and 11.5.2001 otherwise) by Health Act 1999 (c. 8), s. 67(1), Sch. 4 para. 73; S.I. 1999/2342, art. 2(4)(b)(i); S.I. 2001/1985, art. 2(4)

F10S. 519A(2)(aba) inserted (10.10.2002 for W., otherwise prosp.) by National Health Service Reform and Health Care Professions Act 2002 (c. 17), s. 42(3), Sch. 5 para. 27; S.I. 2005/2352, art. 2, Sch.

F11Words in s. 519A(2)(b) substituted (1.3.2007) by National Health Service (Consequential Provisions) Act 2006 (c. 43), s. 8(2), Sch. 1 para. 100(c)