Corporation Tax Act 2010 section 987

NHS foundation trusts

Section 987 gives the Treasury the power to make NHS foundation trusts liable to corporation tax on specified commercial activities, removing them from the general exemption for health service bodies.

• The Treasury may, by order, make an NHS foundation trust subject to corporation tax on a specified activity or class of activity, but only where that activity appears to be commercial in nature
• An order can only be made where it is needed to reduce or remove differences in tax treatment between the NHS foundation trust and other commercial bodies carrying on the same or similar activities
• Activities authorised under section 43(1) of the National Health Service Act 2006 (the trust's principal healthcare functions) are not treated as commercial activities for these purposes
• The order must set out how taxable profits are to be determined and may include de minimis thresholds below which profits or turnover are disregarded