Section CW 39 — Income Tax Act 2007: Local authorities

CW 39 Local authorities Exempt income (1) An amount of income derived from sinking funds relating to the debt of a local authority is exempt income. Exempt income (2) Any other amount of income derived by a local authority is exempt income. Exclusion: amounts received in trust (3) Subsection (2) does not apply to an amount of income that a local authority derives as a trustee. Exclusion: certain amounts from commercial undertakings (4) Subsection (2) does not apply to an amount of income that— (a) is derived by a local authority; and (b) is not rates; and (c) is derived from— (i) a council-controlled organisation, other than a council-controlled organisation operating a hospital as a charitable activity on behalf of the local authority; or (ii) an organisation that is a port company, a subsidiary of a port company, or an energy company and that would be a council-controlled organisation in the absence of section 6(4) of the Local Government Act 2002. Exclusion: local authority as port operator (5) Subsection (2) does not apply to an amount of income derived by a local authority in its capacity as a port operator from a port-related commercial undertaking. Port operator and port-related commercial undertaking are defined in section 38(4) of the Port Companies Act 1988. Defined in this Act: amount , council-controlled organisation , exempt income , income , local authority , trustee , Compare: 2004 No 35 s CW 32 Section CW 39(4)(c)(i): substituted, on 1 April 2008, by section 330 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).