united-kingdom corporate-tax-laws city-of-london
Does the private component of the City of London Corporation pay any tax on its financial activities?
<p>I'm referring to the privately run functions of the <a href="https://en.wikipedia.org/wiki/City_of_London_Corporation" rel="nofollow noreferrer">City of London Corporation</a> that are exempt from public authority provisions such as the Freedom of Information Act.</p>

<p><a href="https://www.cityoflondon.gov.uk/assets/about-us/budget-and-spending/city-cash-accounts-2021-22.pdf" rel="nofollow noreferrer">CITY’S CASH
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022</a></p>
<blockquote>
<p>The City of London Corporation is a single legal entity and
legislation treats it as a local authority for tax purposes. VAT is
recovered from HMRC on supplies received and paid to HMRC on supplies
made. All transactions are therefore included without VAT. The City of
London Corporation is exempt from income and corporation tax.</p>
<p>City Re Limited, a wholly-owned subsidiary of the City of London
Corporation in its City’s Cash capacity, conforms to the tax
requirements for Guernsey companies.</p>
<p>Barking Power Limited and Thames Power Limited are both subject to
corporation tax, which comprises current and deferred tax. Corporation
tax is the expected tax payable on the taxable income for the year,
using tax rates enacted or substantively enacted at the balance sheet
date and any adjustment to tax payable in respect of previous years.</p>
<p>Deferred tax is recognised in respect of all timing differences that
have originated but not reversed at the balance sheet date where
transactions or events have occurred at that date that will result in
an obligation to pay more, or a right to pay less tax, with the
exception of deferred tax assets that are recognised only to the
extent that the Directors consider that it is more likely than not
that there will be suitable taxable profits from which the future
reversal of the underlying timing differences can be deducted.</p>
<p>Deferred tax is measured on an undiscounted basis at the tax rates
that are expected to apply in the periods in which timing differences
reverse, based on tax rates and laws enacted or substantively enacted
at the balance sheet date.</p>
</blockquote>
