beta This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Company Taxation Manual

Particular bodies: health service bodies: introduction

‘Health service bodies’ in this guidance means those bodies listed at CTA10/S986.  This includes NHS Foundation Trusts, NHS Trusts and Clinical Commissioning Groups but does not cover all bodies that provide health related services. Any bodies which are not listed will fall to be treated for corporation tax in the same away as any other company, and this will include subsidiaries of bodies listed at CTA10/S986.  Officers should refer any disputed case to CTIS (Technical) for advice.

CTA10/S985 exempts the health service bodies listed in CTA10/S986 from CT.

TCGA92/S271 (3) exempts such health service bodies from CGT.

Health service bodies are, nevertheless, normally companies as defined by CTA10/S1121.  In accordance with ITA07/PART15/CHAPTER15 they must therefore account, on form CT61, for any IT falling within ITA07/S946.  These payments include yearly interest, annuities and other annual payments made by persons other than individuals.  They will not normally include damages paid to a former patient (CTM40360).

Health service bodies should therefore be set up as CT cases – see COM40000 onwards. The corporation tax of any NHS health service bodies are dealt with by Individuals and Public Bodies, NHS and Charities Team.

The exemption from CT for the bodies listed means that no CTSA returns need be issued for them, but officers should check whether the body will need to account for income tax deducted.