Section 987 — Corporation Tax Act 2010: NHS foundation trusts

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.