Exemption for local authorities and certain other bodies from income tax

Tax and Duty Manual Part 07-01-08 sets out guidance on the operation of section 214 of the Taxes Consolidation Act 1997. Section 214 exempts local authorities and certain other bodies from income tax on any income arising to them, other than income to which deposit interest retention tax applies. The following changes have been made to the manual:

• the reference to ‘vocational education committee’ included in the list of exempt bodies has been changed to ‘education and training board’, following a consequential amendment made to section 214 by the Education and Training Boards Act 2013; and
• the meaning given to "local authority" by section 214(1) has been changed to reflect a consequential amendment made to section 214 by the Local Government Reform Act 2014.

26 June 2019