Income Tax Act 2007 section 838

Local authorities and local authority associations

Section 838 exempts United Kingdom local authorities and local authority associations from income tax on their income.

• UK local authorities are completely exempt from income tax on all their income.
• UK local authority associations are likewise exempt from income tax on all their income.
• Tax repayments arising from these exemptions are not automatic — a formal claim for repayment must be submitted.
• The exemption applies only to local authorities and local authority associations within the United Kingdom.