Section 38: Chief Constables Etc (England and Wales): Exemption
Summary
1.Section 38 ensures that Chief Constables and the Commissioner of Police of the Metropolis (the new bodies) created by the Police Reform and Social Responsibility Act 2011 (the Act) will be exempt from corporation tax (CT).
Details of the Section
2.Subsection 1 inserts an exemption from CT for the new bodies at s987A Corporation Tax Act 2010 (CTA 2010).
3.Subsection 2 indicates the date from which the exemption will apply - 16 January 2012 for the Commissioner of Police of the Metropolis and 22 November 2012 for Chief Constables.
Background
4.The Act made significant changes to the structure of policing in England and Wales, specifically by creating Police and Crime Commissioners, The Mayor’s Office for Policing and Crime and the aforementioned new bodies. Subject to specific legislation, these new bodies would be liable to CT.
5.The predecessor bodies, the Police Authorities, were exempt from CT by virtue of s984 CTA 2010 as they were local authorities within the meaning of s1130 CTA 2010. Each of the Police and Crime Commissioners and The Mayor’s Office for Policing and Crime meet the definition of local authority for CT purposes and so are covered by s984.
6.This section introduces legislation to specifically exempt the new bodies from CT as they no longer fall within the definition of local authorities for the purposes of s1130 CTA 2010.
