Legalize / United Kingdom / Public General Act

National Health Service Act 2006

Type Public General Act

Publication 2006-11-08

Last updated 2025-09-01

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

General powers

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Specific powers

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Finance

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Reports and other information

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Seal and evidence

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General

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SCHEDULE 9

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SCHEDULE 10

General duty

1

In auditing the accounts of any NHS foundation trust an auditor must by examination of the accounts and otherwise satisfy himself that—

(a) they are prepared in accordance with directions under paragraph 25 of Schedule 7,

(b) they comply with the requirements of all other provisions contained in, or having effect under, any enactment which are applicable to them,

(d) the trust has made proper arrangements for securing economy, efficiency and effectiveness in its use of resources.

Allowances for members of certain bodies

2

(1) An auditor of an NHS foundation trust has a right of access at all reasonable times to every document relating to the trust which appears to him necessary for the purposes of his functions under this Chapter.

(2) The auditor may—

(a) require a person holding or accountable for any such document to give him such information and explanation as he considers necessary for the purposes of his functions under this Chapter,

(b) if he considers it necessary, require the person to attend before him in person to give the information or explanation or to produce the document.

(3) The auditor may also—

(a) require any director or officer of the trust to give him such information or explanation as he considers necessary for the purposes of his functions under this Chapter,

(b) if he considers it necessary, require the director or officer to attend before him in person to give the information or explanation.

(4) The trust must provide the auditor with every facility and all information which he may reasonably require for the purposes of his functions under this Chapter; but this sub-paragraph does not affect the generality of sub-paragraphs (1) to (3).

(5) A person who without reasonable excuse fails to comply with any requirement of an auditor of an NHS foundation trust under any of sub-paragraphs (1) to (3) is guilty of an offence.

(6) A person guilty of an offence under sub-paragraph (5) is liable on summary conviction—

(a) to a fine not exceeding level 3 on the standard scale, and

(b) to an additional fine not exceeding £20 for each day on which the offence continues after conviction for the offence.

(7) Any expenses incurred by an auditor of an NHS foundation trust in connection with proceedings for an offence under sub-paragraph (5) alleged to have been committed in relation to the audit of the accounts of the trust, so far as not recovered from any other source, are recoverable from the trust.

Reports

3

In auditing the accounts of an NHS foundation trust, the auditor must consider—

(a) whether, in the public interest, he should make a report on any matter coming to his notice in the course of the audit, in order for it to be considered by the trust or brought to the attention of the public, and

(b) whether the public interest requires any such matter to be made the subject of an immediate report rather than of a report to be made at the conclusion of the audit.

4

(1) When an auditor of an NHS foundation trust has concluded his audit of the trust's accounts, he must enter on the accounts—

(a) a certificate that he has completed the audit in accordance with this Chapter, and

(b) his opinion on the accounts.

(2) But where the auditor makes a report to the council of governors and board of directors of the trust under paragraph 3 at the conclusion of the audit, he may instead include the certificate and his opinion in that report.

5

(1) Any report under paragraph 3 must be sent by the auditor to the council of governors and board of directors of the trust and to NHS England—

(a) at once if it is an immediate report,

(b) otherwise not later than 14 days after conclusion of the audit.

(2) The directors must take the report into consideration as soon as practicable after receiving it.

Referral to regulator

6

If the auditor of an NHS foundation trust has reason to believe that the trust or a director or officer of the trust—

(a) is about to make, or has made, a decision which involves or would involve the incurring of expenditure which is unlawful, or

(b) is about to take, or has taken, a course of action which, if pursued to its conclusion, would be unlawful and likely to cause a loss or deficiency,

he must refer the matter at once to NHS England.

Audit of accounts of directors or officers

7

(1) Where a director or officer of an NHS foundation trust receives money or other property—

(a) on behalf of the trust, or

(b) for which he ought to account to the trust,

the accounts of the director or officer must be audited by the auditor of the accounts of the trust.

(2) The accounts of the director or officer must be made up to 31st March.

(3) Paragraph 25(5) of Schedule 7 and paragraphs 1 to 5 of this Schedule apply with the necessary modifications to the audit under this paragraph.

Restriction on disclosure of information

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(1) No information relating to an NHS foundation trust or other person and obtained by an auditor (or by a person acting on the auditor's behalf) under this Chapter or in the course of an audit under this Chapter may be disclosed except—

(a) with the consent of the person to whom the information relates,

(b) for the purposes of any functions of an auditor of an NHS foundation trust,

(d) for the purposes of the functions of the Comptroller and Auditor General under this Chapter,

(e) for the purposes of the functions of the Care Quality Commission,

(f) for the purposes of any criminal proceedings.

(2) A person who discloses information in contravention of sub-paragraph (1) is guilty of an offence.

(3) A person guilty of an offence under sub-paragraph (2) is liable—

(a) on summary conviction, to imprisonment for a term not exceeding the general limit in a magistrates’ court or to a fine not exceeding the statutory maximum (or to both),

(b) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine (or to both).

(4) In relation to an offence committed before 2 May 2022 the reference in sub-paragraph (3) to a period of imprisonment of 12 months is a reference to a period of imprisonment of 6 months.

SCHEDULE 11

How pilot schemes may be initiated

1

(1) A pilot scheme may be made—

(a) on the initiative of NHS England, or

(b) in response to a request made by a person wishing to participate in the scheme.

(2) The request referred to in sub-paragraph (1)(b) must—

(a) be made in writing, and

(b) comply with such requirements (if any) as may be prescribed.

Preliminary steps to be taken

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(1) Before making a pilot scheme, NHS England must prepare proposals for the scheme and submit them to the Secretary of State.

(2) But proposals may be submitted by NHS England only with the agreement of the other proposed participants.

(3) In preparing proposals for a pilot scheme, NHS England must comply with any directions given to it by the Secretary of State as to—

(a) the matters to be dealt with, and information to be included, in the proposals, and

(b) the procedure to be followed by NHS England.

(4) Before submitting proposals for a pilot scheme, NHS England must (in addition to complying with any requirements about consultation imposed by or under any other enactment) comply with any directions given to it by the Secretary of State about the extent to which, and manner in which, it must consult on the proposals.

(5) The Secretary of State may give directions—

(a) requiring NHS England to submit proposals to him,

(b) as to the matters to which NHS England must have regard in making any recommendation to the Secretary of State when submitting proposals for a pilot scheme,

(d) requiring NHS England to provide the Secretary of State with summaries (prepared and presented in the manner specified in the directions) of all requests received by it during the period specified in the directions.

(6) A direction under this paragraph may be given so as to apply—

(a) generally in circumstances specified in the direction, or

(b) in relation to a particular case.

Approval

3

(1) If proposals for a pilot scheme are submitted under paragraph 2, the Secretary of State must—

(a) approve them as submitted,

(b) make such modifications as he considers appropriate and approve them as modified, or

(2) The Secretary of State may not approve proposals for a pilot scheme unless satisfied that they include satisfactory provision for any participant other than NHS England to withdraw from the scheme if he wishes to do so.

(3) When the Secretary of State makes a decision under this paragraph—

(a) he must notify NHS England of the decision, and

(b) NHS England must, without delay, notify the other participants in the proposed scheme.

Preliminary approval

4

(1) This paragraph applies if NHS England proposes to make a pilot scheme but has not determined who the participants, or who all of the participants, will be.

(2) NHS England may apply to the Secretary of State for preliminary approval to be given to its proposals.

(3) If such an application is made, the Secretary of State must—

(a) give preliminary approval to the proposals as submitted,

(b) make such modifications as he considers appropriate and give preliminary approval to them as modified, or

(4) If NHS England is given preliminary approval, it must take such steps, with a view to obtaining final approval for the proposed pilot scheme, as the Secretary of State may direct.

(5) The fact that the Secretary of State has given preliminary approval to proposals for a pilot scheme does not affect his right to refuse to approve the completed proposals when they are submitted under paragraph 2.

(6) Sub-paragraphs (3) to (6) of paragraph 2 apply in relation to an application for preliminary approval of proposals under this paragraph as they apply in relation to proposals under that paragraph.

Strategic Health Authorities: further duty to involve users

5

(1) Proposals for a pilot scheme submitted under paragraph 2, or included in an application for preliminary approval of proposals under paragraph 4, must include—

(a) an assessment by NHS England of the likely effect of the implementation of the proposals in the area concerned on the services mentioned in sub-paragraph (2),

(b) any assessment prepared under sub-paragraph (3).

(2) The services are—

(a) pharmaceutical services,

(b) local pharmaceutical services provided under existing pilot schemes or LPS schemes,

(3) If it appears to NHS England that the proposals would, if implemented, affect any of the services mentioned in sub-paragraph (2) provided in another area, it must prepare an assessment of the likely effect on those services of the implementation of the proposals before submitting them under paragraph 2 or including them in an application for preliminary approval under paragraph 4.

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Guidance

6

The Secretary of State may issue guidance about the criteria by reference to which, as a general rule, powers under paragraph 3 or 4 are likely to be exercised.

Making a scheme

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(1) If the Secretary of State approves proposals for a pilot scheme under paragraph 3 and notifies NHS England in accordance with that paragraph, NHS England must implement the proposals in accordance with directions given by the Secretary of State.

(2) A proposed participant in a pilot scheme (other than NHS England) may withdraw at any time before the proposals relating to him are implemented.

(3) A pilot scheme, as implemented, may differ from the proposals for the scheme approved by the Secretary of State only if he agrees to the variation or—

(a) directions given by him (either under sub-paragraph (1) or generally) authorise variations that satisfy specified requirements, and

(b) the variation satisfies those requirements.

(4) As soon as is reasonably practicable after implementing proposals for a pilot scheme, NHS England must (in accordance with any directions given to it by the Secretary of State) publish details of the scheme.

SCHEDULE 12

Provision of local pharmaceutical services

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(1) NHS England or the Secretary of State ... may establish LPS schemes.

(2) In this Act, an “LPS scheme” means one or more agreements—

(a) made by NHS England or the Secretary of State (the “commissioner”) ... in accordance with this Schedule,

(b) under which local pharmaceutical services will be provided (otherwise than by the the commissioner). ...

(2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2B) The Secretary of State may establish an LPS scheme only where the other party is NHS England.

(2C) NHS England may provide local pharmaceutical services under an LPS scheme only in such circumstances as may be prescribed.

(3) An LPS scheme may include arrangements—

(a) for the provision of services which are not local pharmaceutical services, but which may be provided under this Act, other than under Chapter 1 of this Part, and whether or not of the kind usually provided by pharmacies,

(b) for the provision of training and education (including training and education for persons who are, or may become, involved in the provision of local pharmaceutical services).

(4) An LPS scheme may not combine arrangements for the provision of local pharmaceutical services with arrangements for the provision of primary medical services or primary dental services.

(5) In determining the arrangements it needs to make in order to comply with section 126, NHS England may take into account arrangements under an LPS scheme ....

(6) The functions of an NHS trust , an NHS foundation trust and NHS England include power to provide any services to which an LPS scheme applies.

(7) In this Schedule—

“local pharmaceutical services” means such services of a kind which may be provided under section 126, or by virtue of section 127, (other than practitioner dispensing services) as may be prescribed for the purposes of this Schedule, and

“LP services” means services provided under an LPS scheme (including any services to which the scheme applies as a result of sub-paragraph (3)).

(8) “Practitioner dispensing services” means the provision of drugs, medicines or listed appliances (within the meaning given by section 126) by a medical practitioner or dental practitioner to a patient of his pursuant to arrangements made by virtue of section 132(1).

Designation of priority neighbourhoods or premises

2

(1) The Secretary of State may make regulations allowing NHS England... to designate—

(a) relevant areas,

(b) premises, or

for the purposes of this paragraph.

(2) The regulations may, in particular, make provision—

(a) as to the circumstances in which, and the relevant areas or premises in relation to which, designations may be made or maintained,

(b) allowing NHS England to defer consideration of pharmaceutical list applications relating to relevant areas, premises or descriptions of premises that have been designated,

(d) requiring a designation to be cancelled—

(i) if the Secretary of State gives a direction to that effect, or

(ii) in prescribed circumstances.

(3) “Pharmaceutical list applications” means applications for inclusion in a pharmaceutical list.

(4) “Relevant area” has the same meaning as in section 129(2A).

Regulations

3

(1) The Secretary of State may make regulations with respect to LP services.

(2) The regulations must include provision for participants other than the commissioner to withdraw from an LPS scheme if they wish to do so.

(3) The regulations may, in particular—

(a) provide that an LPS scheme may be made only—

(i) in prescribed circumstances,

(ii) in relation to an area, a community or a category of persons determined in accordance with the regulations, or

(iii) in relation to premises determined in accordance with the regulations,

(b) provide that only prescribed services, or prescribed categories of service, may be provided in accordance with an LPS scheme,

(d) impose conditions (including conditions as to qualifications and experience) to be satisfied by persons providing LP services,

(e) require details of each LPS scheme to be published,

(f) make provision with respect to the variation and termination of an LPS scheme,

(g) prevent (except in such circumstances and to such extent as may be prescribed) the provision of both LP services and pharmaceutical services from the same premises,

(h) make provision with respect to the inclusion, removal, re-inclusion or modification of an entry in respect of premises in a pharmaceutical list,

(i) provide for parties to an LPS scheme to be treated, in such circumstances and to such extent as may be prescribed, as health service bodies for the purposes of section 9,

(j) provide for directions, as to payments, made under section 9(11) (as it has effect as a result of regulations made by virtue of paragraph (i)) to be enforceable in the county court (if the court so orders) as if they were judgments or orders of that court,

(k) authorise NHS England or the Secretary of State ... to make payments of financial assistance for prescribed categories of preparatory work undertaken—

(i) in connection with preparing proposals for an LPS scheme, or

(ii) in preparation for the provision of services under a proposed LPS scheme.

SCHEDULE 13

Constitution

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Procedure

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Miscellaneous

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Interpretation

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Interpretation: Provisions under the National Health Service (Wales) Act 2006 (c. 42)

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SCHEDULE 14

Pharmaceutical services expenditure

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Main expenditure

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Interpretation

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SCHEDULE 15

NHS bodies

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Accounts to be kept by NHS bodies

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Preparation of annual accounts

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Auditing of accounts of certain NHS bodies

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Transmission of annual accounts

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Auditing of certain Special Health Authority accounts by Comptroller and Auditor General

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Summarised accounts of NHS bodies other than Special Health Authorities

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Exceptions for accounts of charitable trusts

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Exceptions for accounts of non-charitable trusts

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SCHEDULE 16

Status

1

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Powers

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Membership

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Appointment, procedure etc

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5

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Remuneration and allowances

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Staff

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Delegation of functions

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Assistance

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Payments and loans to the Commission

10

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Accounts and audit

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Reports and other information

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Application of seal and evidence

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SCHEDULE 17

Part 1 — Descriptions of exempt information

1

Information relating to a particular employee, former employee or applicant to become an employee of, or a particular office-holder, former office-holder or applicant to become an office-holder under, a relevant body.

2

Information relating to any particular occupier or former occupier of, or applicant for, accommodation provided by or at the expense of a relevant body.

3

Information relating to any particular applicant for, or recipient or former recipient of, any service provided by a relevant body.

4

Information relating to any particular applicant for, or recipient or former recipient of, any financial assistance provided by a relevant body.

5

The amount of any expenditure proposed to be incurred by a relevant body under any particular contract for the acquisition of property or the supply of goods and services.

6

Any terms proposed or to be proposed by or to a relevant body in the course of negotiations for a contract for the acquisition or disposal of property or the supply of goods or services.

7

The identity of a relevant body (as well as of any other person, by virtue of paragraph 6) as the person offering any particular tender for a contract for the supply of goods or services.

8

Information relating to any consultations or negotiations, or contemplated consultations or negotiations, in connection with any labour relations matter arising between a relevant body or a Minister of the Crown and employees of, or office-holders under, a relevant body.

9

Any instructions to counsel and any opinion of counsel (whether or not in connection with any proceedings) and any advice received, information obtained or action to be taken in connection with—

(a) any legal proceedings by or against a relevant body, or

(b) the determination of any matter affecting a relevant body,

(whether, in either case, proceedings have been commenced or are in contemplation).

10

Information relating to a particular person who was included in a list of persons undertaking to provide services under Part 2 of the National Health Service Act 1977 (c. 49).

11

Information relating to a particular person who is, or was formerly, included in, or is an applicant for inclusion in—

(a) a pharmaceutical list, or

(b) a pharmaceutical list or ophthalmic list under the National Health Service (Wales) Act 2006 (c. 42).

12

Information relating to a particular person who—

(a) provided primary medical services, primary dental services or primary ophthalmic services under a contract under section 28K, 28Q or 28WA of the National Health Service Act 1977, or

(b) was included in a list under section 28X of that Act.

13

(1) Information relating to a particular person who—

(a) is, or was formerly, providing primary medical services, primary dental services or primary ophthalmic services under a contract under section 84, 100 or 117, or

(b) is, or was formerly, included in, or is an applicant for inclusion in, a list under section 91, 106, 123 or 146147A.

(2) In this paragraph—

(a) references to primary medical services and primary dental services include such services provided under the National Health Service (Wales) Act 2006, and

(b) references to provisions of this Act include references to corresponding provisions of that Act.

14

Information relating to any particular employee, former employee, or applicant to become an employee, of a person referred to in paragraph 10, 11, 12 or 13.

15

Information relating to the physical or mental health of a particular individual.

Part 2 — Qualifications

16

Information relating to a person of a description specified in any of paragraphs 1 to 4 and 10 to 14 of Part 1 is not exempt information by virtue of that paragraph unless it relates to an individual of that description in the capacity indicated by the description.

17

Information falling within paragraph 5 of Part 1 is exempt information if and so long as disclosure to the public of the amount there referred to would be likely to give an advantage to a person entering into, or seeking to enter into, a contract with a relevant body in respect of the property, goods or services, whether the advantage would arise as against that body or as against other such persons.

18

Information falling within paragraph 6 of Part 1 is exempt information if and so long as disclosure to the public of the terms would prejudice a relevant body in those or any other negotiations concerning the property or goods or services.

19

Information falling within paragraph 8 of Part 1 is exempt information if and so long as disclosure to the public of the information would prejudice a relevant body in those or any other consultations or negotiations in connection with a labour relations matter arising as mentioned in that paragraph.

Part 3 — Interpretation

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In this Schedule—

“disposal”, in relation to property, includes the granting of an interest in or right over it,

“employee” means a person employed under a contract of service,

“labour relations matter” means—any of the matters specified in paragraphs (a) to (g) of section 178(2) of the Trade Union and Labour Relations (Consolidation) Act 1992 (c. 52) (matters which may be the subject of a collective agreement), orany dispute about a matter falling within paragraph (a),and for the purposes of this definition the enactments mentioned in paragraph (a), with the necessary modifications, apply in relation to office-holders under a relevant body as they apply in relation to employees of a relevant body,

“office-holder”, in relation to a relevant body, means the holder of any paid office appointments to which are or may be made or confirmed by the body or by any person who holds any such office or is an employee of the body.

SCHEDULE 18

Application of Schedule

1

This Schedule applies where, under any arrangements under regulations under section 75, any functions of a body (“the transferor”) will be exercised by another body (“the transferee”).

Orders transferring staff

2

(1) The Secretary of State may by order transfer to the transferee any specified description of employees of the transferor.

(2) An order may be made under this paragraph only if any prescribed requirements about consultation have been complied with in relation to each of the employees to be transferred.

Effect of order on contracts of employment

3

(1) The contract of employment of an employee transferred by an order under paragraph 2—

(a) is not terminated by the transfer, and

(b) has effect from the date of the transfer as if originally made between the employee and the transferee.

(2) In particular—

(a) all the rights, powers, duties and liabilities of the transferor under or in connection with the employee's contract of employment are by virtue of this sub-paragraph transferred to the transferee, and

(b) anything done before the date of the transfer by or in relation to the transferor in respect of the employee or his contract of employment is deemed from that date to have been done by or in relation to the transferee.

(3) Sub-paragraphs (1) and (2) do not transfer an employee's contract of employment, or the rights, powers, duties and liabilities under or in connection with it, if he informs the transferor or the transferee that he objects to the transfer.

(4) Where an employee objects as mentioned in sub-paragraph (3), his contract of employment with the transferor is terminated immediately before the date on which the transfer would occur; but he must not be treated, for any purpose, as having been dismissed by that body.

(5) This paragraph does not affect any right of an employee transferred by an order under paragraph 2 to terminate his contract of employment if a substantial change is made to his detriment in his working conditions; but no such right arises by reason only that, under this paragraph, the identity of his employer changes unless the employee shows that, in all the circumstances, the change is a significant change and is to his detriment.

Effect of order on pension rights

4

(1) An order under paragraph 2 may provide that, in the case of an employee of any specified description who is transferred by the order, paragraph 3 does not apply in relation to—

(a) so much of the employee's contract of employment as relates to relevant pension provisions, or

(b) any rights, powers, duties or liabilities under or in connection with that contract, or otherwise arising in connection with the employee's employment, and relating to such provisions.

(2) If an order under paragraph 2 provides as mentioned in sub-paragraph (1), the order may in relation to any such employee make such provision (if any) as the Secretary of State considers appropriate with respect to all or any of the matters mentioned in paragraphs (a) and (b) of that sub-paragraph.

(3) The provision which may be made by virtue of sub-paragraph (2) includes provision—

(a) for any such employee's contract of employment with the transferee to have effect with any specified modifications,

(b) for relevant pension provisions of any specified description to have effect in the case of any such employee with any such modifications.

(4) In this paragraph “relevant pension provisions” means the provisions of an occupational pension scheme within the meaning of the Pension Schemes Act 1993 (c. 48), with the exception (if the order under paragraph 2 so provides) of any provisions of such a scheme falling within a description specified in the order.

Divided employments

5

(1) Where an employee will be transferred by an order under paragraph 2 but will continue to be employed for certain purposes by the transferor, the order may provide that the contract of employment of the employee is, on the date on which the employee is transferred, divided so as to constitute two separate contracts of employment between the employee and the transferor and between the employee and the transferee.

(2) Where an employee's contract of employment is divided as provided under sub-paragraph (1)—

(a) the order must provide for paragraph 3 to have effect in the case of the employee and his contract of employment subject to appropriate modifications, and

(b) paragraph 4 similarly applies only so far as appropriate in connection with the employee's employment by the transferee.

SCHEDULE 19

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 20

Care of mothers and young children

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prevention, care and after-care

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Home help and laundry facilities

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Research

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 21

Prohibition, and certificate of the Secretary of State

1

(1) Any person who sells or buys the goodwill of a medical practice which it is unlawful to sell by virtue of section 259 is guilty of an offence and liable on conviction on indictment to a fine not exceeding—

(a) such amount as will in the court's opinion secure that he derives no benefit from the offence, and

(b) the further amount of £500,

or to imprisonment for a term not exceeding three months, or both.

(2) Any person proposing to be a party to a transaction or series of transactions which he considers might amount to a sale of the goodwill of a medical practice in contravention of section 259 may ask the Secretary of State for a certificate under this paragraph.

(3) The Secretary of State must—

(a) consider any such application, and

(b) if he is satisfied that the transaction or series of transactions does not involve the giving of valuable consideration in respect of the goodwill of such a medical practice, issue to the applicant a certificate to that effect.

(4) The certificate must—

(a) be in the prescribed form, and

(b) set out all material circumstances disclosed to the Secretary of State.

(5) Where any person is charged with an offence under this paragraph in respect of any transaction or series of transactions, it is a defence to prove that the transaction or series of transactions was certified by the Secretary of State under sub-paragraph (3).

(6) Any document purporting to be such a certificate is admissible in evidence and is deemed to be such a certificate unless the contrary is proved.

(7) The court may disregard such a certificate if it appears to the court that the applicant for the certificate—

(a) failed to disclose to the Secretary of State all the material circumstances, or

(b) made any misrepresentation with respect to the material circumstances.

(8) A prosecution for an offence under this paragraph may be instituted only by or with the consent of the Director of Public Prosecutions, and the Secretary of State must, at the request of the Director, furnish him with—

(a) a copy of any certificate issued by the Secretary of State under sub-paragraph (3), and

(b) copies of any documents produced to him in connection with the application for that certificate.

Certain transactions deemed sale of goodwill

2

(1) For the purposes of section 259 and paragraph 1, a disposal of premises previously used for the purposes of a medical practice is deemed to be a sale of the goodwill of a medical practice if—

(a) the person disposing of the premises did so knowing that another person (“A”) intended to use them for the purposes of A's medical practice, and

(b) the consideration for the disposal substantially exceeded the consideration that might reasonably have been expected if the premises had not previously been used for the purposes of a medical practice.

(2) If a person disposes of any premises together with any other property, the court must, for the purposes of sub-paragraph (1), make such apportionment of the consideration as it considers just.

(3) For the purposes of sub-paragraphs (1) and (2)—

(a) “disposal” means any sale, letting or other form of disposal (whether by a single transaction or a series of transactions) and “disposes” and “disposing” must be read accordingly, and

(b) a person who procures the disposal of any premises must be treated as having disposed of them.

(4) Where in pursuance of any partnership agreement—

(a) any valuable consideration, other than the performance of services in the partnership business, is given by a partner or proposed partner as consideration for his being taken into partnership,

(b) any valuable consideration is given to a partner, on or in contemplation of his retirement or of his acceptance of a reduced share of the partnership profits, or to the personal representative of a partner on his death, not being a payment in respect of that partner's share in past earnings of the partnership or in any partnership assets or any other payment required to be made to him as the result of the final settlement of accounts, as between him and the other partners, in respect of past transactions of the partnership, or

(c) services are performed by any partner for a consideration substantially less than those services might reasonably have been expected to be worth having regard to the circumstances at the time when the agreement was made,

there is deemed for the purposes of section 259 and paragraph 1 to have been a sale of goodwill as specified in sub-paragraph (5).

(5) The sale of goodwill is the sale of the goodwill of the practice—

(a) of any partner to whom, or to whose personal representative, the consideration (or any part of it) is given or for whose benefit the services are performed,

(b) to the partner or each of the partners by or on whose behalf the consideration (or any part of it) was given or to the partner who performed the services.

(6) The sale is deemed for the purposes of section 259 and paragraph 1 to have been effected—

(a) in a case to which sub-paragraph (4)(a) or (b) applies, at the time when the consideration was given, or, if the consideration was not all given at the same time, at the time when the first part was given, or

(b) in a case to which sub-paragraph (4)(c) applies, at the time when the agreement was made.

(7) Sub-paragraph (8) applies if a person (“the assistant”)—

(a) performs services on behalf of a person who carries on a medical practice (or as an employee of a person employing a practitioner who carries on a medical practice),

(b) receives substantially less remuneration for performing those services than might reasonably have been expected, having regard to the circumstances at the time when the remuneration was fixed, and

(8) For the purposes of section 259 and paragraph 1, a sale of the goodwill of the practice is deemed to have taken place (at the time when the remuneration was fixed) unless it is proved that the remuneration was not fixed in contemplation of the assistant's succeeding to the practice.

(9) For the purposes of section 259 and paragraph 1, the goodwill of a medical practice is deemed to have been sold if sub-paragraph (10) or (11) applies.

(10) This sub-paragraph applies where a person carrying on the practice (or employing a practitioner who carries on a medical practice) agrees, for valuable consideration—

(a) to do or refrain from doing any act for the purpose of facilitating the succession of another to the practice, or

(b) to allow any act to be done for that purpose.

(11) This sub-paragraph applies where a person—

(a) gives valuable consideration to a person carrying on the practice (or employing a practitioner who carries on a medical practice), and

(b) succeeds, or has previously succeeded, to the practice.

(12) Sub-paragraph (9) does not apply if it is proved that no part of the consideration was given in respect of the goodwill.

(13) Sub-paragraph (9) does not apply to anything done—

(a) in relation to the acquisition of premises for the purposes of a medical practice,

(b) in pursuance of a partnership agreement, or

Consideration

3

(1) In determining for the purposes of section 259 and this Schedule the consideration given in respect of any transaction, the court must—

(a) have regard to any other transaction appearing to the court to be associated with the first transaction,

(b) estimate the total consideration given in respect of both or all the transactions, and

(2) For the purposes of section 259 and this Schedule consideration is deemed to be given to a person (“B”) if—

(a) it is given to another person but with B's knowledge and consent, and

(b) it appears to the court that B has derived, or will derive, a substantial benefit from the giving of the consideration.

Carried-over goodwill

4

The fact that a person's medical practice was previously carried on by another person who at any time provided or performed services as specified in section 259 does not, by itself, make it unlawful under section 259 for the goodwill of his practice to be sold.

Interpretation

5

In section 259 and this Schedule, unless the context otherwise requires, references to a person include, in the case of an individual who has died, references to his personal representative.

SCHEDULE 22

Orders and directions

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Notices, authorisations and proof of documents

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Territorial extent

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

False documents and false statements

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Restrictions on disclosing information

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Offences by corporations

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Penalties

8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Production of documents

9

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Penalties for offences: transitional modification for England and Wales

11

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Secretary of State's duty to promote health service

Interpretation of this Chapter

Draft report

Consultation plan

Applications for the establishment of clinical commissioning groups

Draft report

Co-operation between NHS bodies

Directions and regulations under this Part

Co-operation between NHS bodies and local authorities

Regulations under section 129: appeals, etc

Inadequate provision of pharmaceutical services

Pilot schemes

Disqualification of practitioners

Variation of constitution otherwise than on application

Charges in respect of non-residents

Charges for optical appliances

Mergers

Remission and repayment of charges

Offences relating to charges

Acquisition, use and maintenance of property

Compulsory disclosure of documents

Duty as to improvement in quality of services

Additional functions of PCT Patients' Forums

Establishment of Patients' Forums

Public involvement and consultation

Directions in cases where Strategic Health Authority arranges involvement

Overview and scrutiny committees: exempt information

Application to the City of London

Joint overview and scrutiny committees etc

Application to the City of London

Payments in respect of voluntary organisations under section 256

Controls: supplementary

Medical inspection of pupils

Contraceptive services

Provision of vehicles for disabled persons

Provision of a microbiological service by the Secretary of State

Powers in relation to research etc.

Corporate status

Pay and allowances

Membership of Strategic Health Authorities

Staff

Miscellaneous

Status

Membership

Staff

Remuneration, pensions etc of members

Trust funds and trustees

General

Rights and liabilities

Powers of Primary Care Trusts to enter into externally financed development agreements

Research

Training

Specific duties

Compulsory acquisition

Dissolution

Status

Board of directors

Regulations

Provision to be made by first NHS trust order

Temporary availability of staff etc.

Establishment of NHS trust prior to operational date

Transfer of staff to NHS trusts

Transfer of property and liabilities to NHS trusts

...

Pay and allowances

Reports and other information

General

NHS contracts

Research

Training

Joint exercise of functions

Payment for accommodation or services

Additional income

Provision of accommodation and services outside England and Wales

Conferral of further powers by order

Powers of NHS trusts to enter into externally financed development agreements

Agreements under section 92 or 107

Staff

Pensions, etc.

Compulsory acquisition

Use and development of consecrated land and burial grounds

Instruments etc.

Interpretation

Originating capital of NHS trusts

Financial obligations of NHS trusts

Borrowing

Guarantees of borrowing

Limits on indebtedness

Additional public dividend capital

Supplementary payments

Surplus funds

Investment

Corporate status

Pay and allowances

Staff

Miscellaneous

Requirement for a constitution

Eligibility for membership

Constituencies

Becoming a member

Council of Governors

Directors

Initial directors of former NHS trusts

Register of members etc

Auditor

Accounts

Annual reports and forward plans

Meeting of council of governors to consider annual accounts and reports

Instruments etc

Membership

Tenure of office

Remuneration and pensions

Staff

Superannuation

Procedure

Delegation of functions

General powers

Specific powers

Finance

Reports and other information

Seal and evidence

General

General duty

Right to documents and information

Reports

Referral to NHS England

Audit of accounts of directors or officers

Restriction on disclosure of information

How pilot schemes may be initiated

Preliminary steps to be taken

Approval

Preliminary approval

Effect of proposals on existing services

Guidance

Making a scheme

Provision of local pharmaceutical services

Designation of priority neighbourhoods or premises

Regulations

...

Procedure

Miscellaneous

Interpretation

Interpretation: Provisions under the National Health Service (Wales) Act 2006 (c. 42)

Pharmaceutical services expenditure

Main expenditure

Interpretation

NHS bodies

Accounts to be kept by NHS bodies

Preparation of annual accounts

Auditing of accounts of certain NHS bodies

Transmission of annual accounts

Auditing of certain Special Health Authority accounts by Comptroller and Auditor General

Summarised accounts of NHS bodies other than Special Health Authorities

Exceptions for accounts of charitable trusts

Exceptions for accounts of non-charitable trusts

Status

Powers

Membership

Appointment, procedure etc

Remuneration and allowances

Staff

Delegation of functions

Assistance

Payments and loans to the Commission

Accounts and audit

Reports and other information

Application of seal and evidence

Application of Schedule

Orders transferring staff

Effect of order on contracts of employment

Effect of order on pension rights

Divided employments

Care of mothers and young children

Prevention, care and after-care

Home help and laundry facilities

Research

Prohibition, and certificate of the Secretary of State

Certain transactions deemed sale of goodwill

Consideration

Carried-over goodwill

Interpretation

Orders and directions

Notices, authorisations and proof of documents

Territorial extent

False documents and false statements

Restrictions on disclosing information

Offences by corporations

Penalties

Production of documents

Penalties for offences: transitional modification for England and Wales

Editorial notes

[^c1761280]: Act in force at 1.3.2007 subject to provisions of s. 277

[^key-0015f09d77cc27f611b7bd32e2537df0]: Words in Sch. 7 para. 25(3) inserted (27.3.2012 for specified purposes, 1.10.2012 in so far as not already in force) by Health and Social Care Act 2012 (c. 7), ss. 154(6), 306(1)(d)(4); S.I. 2012/1831, art. 2(2)

[^key-004064426a8db5085a5d2dcc57f3f91e]: Words in s. 247(2) omitted (1.4.2013) by virtue of Health and Social Care Act 2012 (c. 7), ss. 191(12)(b), 306(4); S.I. 2013/160, art. 2(2) (with arts. 7-9)

[^key-00703a040ed884065bc71c1350ed33d0]: Words in s. 80(6)(c) omitted (1.4.2013) by virtue of Health and Social Care Act 2012 (c. 7), s. 306(4), Sch. 4 para. 28(7)(c)(i); S.I. 2013/160, art. 2(2) (with arts. 7-9)

[^key-008403c6cf6668db5442744b00060cca]: Words in Sch. 7 para. 18 substituted (1.10.2012) by Health and Social Care Act 2012 (c. 7), ss. 151(9)(b), 306(4); S.I. 2012/1831, art. 2(2)

[^key-00892ce7f5ef6ec2293ffafa9875be9e]: Words in Sch. 1 para. 7A(1) omitted (1.4.2013) by virtue of Health and Social Care Act 2012 (c. 7), ss. 17(7)(b), 306(4); S.I. 2013/160, art. 2(2) (with arts. 7-9)

[^key-008bf0510a6ffd04ebd47317a05c3733]: Sch. 7 para. 23(4)(aa) inserted (1.4.2015) by Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 12 para. 73(3)(a); S.I. 2015/841, art. 3(x) (with Sch. para. 2) (as amended (27.6.2016) by S.I. 2016/675, art. 2)

[^key-00c144af567059fb0309605b6024ccc9]: S. 13J(2) inserted (1.4.2023) by The Health Education England (Transfer of Functions, Abolition and Transitional Provisions) Regulations 2023 (S.I. 2023/368), reg. 1(2), Sch. 1 para. 9(5)(b) (with reg. 7)

[^key-00cdbc66656ddbf5f63cb9cae7e1727e]: Words in Sch. 1 para. 10(5) substituted (1.4.2013) by Health and Social Care Act 2012 (c. 7), ss. 17(11)(d), 306(4); S.I. 2013/160, art. 2(2) (with arts. 7-9)

[^key-00d66b4067762aaa1d0f0b38fe2e6a73]: Words in s. 208(1) substituted (7.2.2023 at 12.00 p.m.) by The Judicial Review and Courts Act 2022 (Magistrates’ Court Sentencing Powers) Regulations 2023 (S.I. 2023/149), regs. 1(2), 2(1), Sch. Pt. 1 table

[^key-00f4e0a08fc81f4be2cc704106789a8a]: S. 263(3) omitted (7.8.2017) by virtue of Health Service Medical Supplies (Costs) Act 2017 (c. 23), ss. 10(5)(b), 12(3); S.I. 2017/809, reg. 2(h) (with reg. 3)

[^key-012aa623a9b66c6ac9626f15fcdcd050]: Words in s. 256(3) substituted (1.7.2022) by Health and Care Act 2022 (c. 31), s. 186(6), Sch. 4 para. 125(4)(b); S.I. 2022/734, reg. 2(a), Sch. (with regs. 13, 29, 30)

[^key-014a57f7c642ca6246dde6d6d4cd3f1f]: Words in s. 256(3) substituted (27.3.2012 for specified purposes, 1.4.2013 in so far as not already in force) by Health and Social Care Act 2012 (c. 7), s. 306(1)(d)(4), Sch. 4 para. 129(3)(a); S.I. 2013/160, art. 2(2) (with arts. 7-9)

[^key-01528c14116f142c3e45bca87c880f38]: Sch. 7 para. 2(2) inserted (1.10.2012) by Health and Social Care Act 2012 (c. 7), ss. 164(6), 306(4); S.I. 2012/1831, art. 2(2)

[^key-01a61637f1ae0e059303175571632692]: S. 52 omitted (1.4.2013) by virtue of Health and Social Care Act 2012 (c. 7), ss. 111(11), 306(4); S.I. 2013/671, art. 2(3)

[^key-01ccd2ebc21674128a29497bcf869acd]: Sch. 12 para. 1(2B)(2C) substituted for Sch. 12 para. 1(2B) (1.4.2013) by Health and Social Care Act 2012 (c. 7), s. 306(4), Sch. 4 para. 93(2)(d) (with Sch. 4 para. 93(6)); S.I. 2013/160, art. 2(2) (with arts. 7-9)

[^key-022cafc6e6617bd86093ba8a3613bfa2]: Sch. 1 para. 7C and cross-heading inserted (1.4.2013) by Health and Social Care Act 2012 (c. 7), ss. 17(9), 306(4); S.I. 2013/160, art. 2(2) (with arts. 7-9)

[^key-025016742e0199014ac37e433d268a8e]: Words in s. 149(8) substituted (18.1.2010) by The Transfer of Tribunal Functions Order 2010 (S.I. 2010/22), art. 1(1), Sch. 2 para. 114 (with Sch. 5)

[^key-02690d1d0d4512224ffe3e808d03b342]: Words in s. 97(3)(b) substituted (1.4.2013) by Health and Social Care Act 2012 (c. 7), s. 306(4), Sch. 4 para. 41(3)(b); S.I. 2013/160, art. 2(2) (with arts. 7-9)

[^key-027312edf16b66b0cec6949238de7729]: S. 125A modified (temp.) (1.7.2022) by The Health and Care Act 2022 (Commencement No. 2 and Transitional and Saving Provision) Regulations 2022 (S.I. 2022/734), reg. 22(2)(4) (with regs. 13, 29, 30)

[^key-0296d26da16f948ae6aa4eb4e9c234fc]: Words in s. 39(1) substituted (1.7.2022) by Health and Care Act 2022 (c. 31), s. 186(6), Sch. 5 para. 14(2); S.I. 2022/734, reg. 2(a), Sch. (with regs. 13, 29, 30)

[^key-029c863be3a3bec1f8df9585d8ce2a34]: S. 217(1)(f) omitted (1.4.2013) by virtue of Health and Social Care Act 2012 (c. 7), s. 306(4), Sch. 4 para. 113(b); S.I. 2013/160, art. 2(2) (with arts. 7-9)

[^key-02c0968307985111999bc3209e1ceeb2]: Words in s. 133(1)(b) substituted (1.4.2013) by Health and Social Care Act 2012 (c. 7), s. 306(4), Sch. 4 para. 70(3) (with Sch. 4 para. 92(8)); S.I. 2013/160, art. 2(2) (with arts. 7-9)

[^key-02ccbb6335cacbfb305257bcc0497e2a]: Words in s. 273(4)(b)(ii) inserted (18.1.2010) by The Transfer of Tribunal Functions Order 2010 (S.I. 2010/22), art. 1(1), Sch. 2 para. 126(a) (with Sch. 5)

[^key-02da62e3a805eb5b6627fd95779bfd2b]: Word in s. 266(1) substituted (7.8.2017) by Health Service Medical Supplies (Costs) Act 2017 (c. 23), ss. 6(6), 12(3); S.I. 2017/809, reg. 2(e)

[^key-02ec163898ab4005523b6509a0659c19]: Words in s. 1GA(2) omitted (1.4.2023) by virtue of The Health Education England (Transfer of Functions, Abolition and Transitional Provisions) Regulations 2023 (S.I. 2023/368), reg. 1(2), Sch. 1 para. 9(3) (with reg. 7)

[^key-0316a6a0df7b3848b0fde329383fea36]: S. 247(1) substituted (1.4.2013) by Health and Social Care Act 2012 (c. 7), ss. 191(11), 306(4); S.I. 2013/160, art. 2(2) (with arts. 7-9)

[^key-0323a503ed819f0364d3ddb8f9abea3c]: S. 71(2A) inserted (1.10.2008) by Health and Social Care Act 2008 (c. 14), ss. 142(4), 170(3)(4); S.I. 2008/2497, art. 5

[^key-0336e03762e4fed8545d1255bd8af01e]: Words in s. 223K(8) substituted (1.7.2022) by Health and Care Act 2022 (c. 31), s. 186(6), Sch. 9 para. 11; S.I. 2022/734, reg. 2(a), Sch. (with regs. 13, 29, 30)

[^key-03477279c50bbb27711066616a136e1b]: Pt. 2 Ch. 2 repealed (1.4.2013) by Health and Social Care Act 2012 (c. 7), ss. 34(2), 306(4); S.I. 2013/160, art. 2(2) (with arts. 7-9)

[^key-039af0ee71492b6b19d3186a5bd2528e]: Words in Sch. 6 para. 3(8) substituted (1.4.2013) by Health and Social Care Act 2012 (c. 7), s. 306(4), Sch. 4 para. 23(2)(a); S.I. 2013/160, art. 2(2) (with arts. 7-9)

[^key-039bef8bc6ebd30e35684cde11b268f5]: Words in s. 275(1) inserted (1.7.2022) by Health and Care Act 2022 (c. 31), s. 186(6), Sch. 4 para. 132(b); S.I. 2022/734, reg. 2(a), Sch. (with regs. 13, 29, 30)

[^key-03f304ecbd10506e454ba8c030147171]: Words in s. 275(1) inserted (1.12.2008) by The Housing and Regeneration Act 2008 (Consequential Provisions) Order 2008 (S.I. 2008/3002), art. 1(2), Sch. 1 para. 54 (with Sch. 2) (see S.I. 2008/3068, art. 2(1)(b))

[^key-048d2015449ead45d6dd9af99e070f16]: Words in s. 87(3)(d) substituted (1.4.2013) by Health and Social Care Act 2012 (c. 7), s. 306(4), Sch. 4 para. 33; S.I. 2013/160, art. 2(2) (with arts. 7-9)

[^key-04979da2d34e9aca2e3b960d6e296677]: S. 260(2)-(4) omitted (7.8.2017) by virtue of Health Service Medical Supplies (Costs) Act 2017 (c. 23), ss. 10(3)(a), 12(3); S.I. 2017/809, reg. 2(h) (with reg. 3)

[^key-04c280fd2c2e1f00266672cbb8d5ea57]: Words in s. 56(1)(b) inserted (1.4.2013) by Health and Social Care Act 2012 (c. 7), ss. 168(1)(a), 306(4); S.I. 2013/671, art. 2(3)

[^key-04ea549938b7fd72e9a9f6ef15f965b8]: Words in s. 13N(3) substituted (1.7.2022) by Health and Care Act 2022 (c. 31), s. 186(6), Sch. 4 para. 97; S.I. 2022/734, reg. 2(a), Sch. (with regs. 13, 29, 30)

[^key-053504b101348b1bafafd715fe8fa437]: S. 263 in force at 7.8.2017 immediately after 1999 c. 8, s. 35 comes into force by S.I. 2017/810, art. 2(b)

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