The Corporation Tax (Instalment Payments)Regulations 1998

Large companies

3.—(1) Subject to paragraphs (2) and (3), a large company is a company whose profits in any accounting period exceed the upper relevant maximum amount in force at the end of that period.

(2) A company is not a large company as respects an accounting period if the amount of its total liability for that period does not exceed £5,000 or, where the accounting period is less than twelve months, that amount proportionately reduced.

(3) A company is not a large company as respects an accounting period if—

(a) its profits for that accounting period do not exceed £10,000,000, and

(b) apart from this paragraph, it was not a large company in the twelve months preceding that accounting period.

(4) In paragraph (1) “upper relevant maximum amount” shall be construed in accordance with section 13 of the Taxes Act(1) but disregarding section 434(3A) and (3B) of the Taxes Act(2) and section 88(4) of the Finance Act 1989(3) (amounts to be left out of account in determining profits for the purposes of section 13 of the Taxes Act).

(5) Subsections (3) to (8) of section 13 of the Taxes Act (reduction of lower and upper relevant maximum amounts by reference to whether a company has one or more associated companies and length of company’s accounting period) shall apply so as to reduce the amount specified in paragraph (3)(a) in accordance with those subsections as they apply so as to reduce the lower and upper relevant maximum amounts, except that—

(a) the number of associated companies referred to in subsection (3) of that section shall be determined by reference to the number existing at the end of the immediately preceding accounting period of the company or, if there is no immediately preceding accounting period or the immediately preceding accounting period did not end on the day before the accounting period concerned commenced, by reference to the number existing at the commencement of the accounting period concerned;

(b) section 434(3A) and (3B) of the Taxes Act and section 88(4) of the Finance Act 1989 shall be disregarded.

(6) For the purposes of paragraph (3)(b) a company shall be treated as not being a large company in the period of twelve months preceding the accounting period in question in either of the following circumstances—

(a) during any part of the period of twelve months it either did not exist or did not have an accounting period;

(b) a relevant accounting period of the company either falls within or ends in that period of twelve months.

(7) In paragraph (6) “relevant accounting period” means an accounting period as respects which, by virtue of the provisions of this regulation other than paragraph (3), the company was not a large company.

(1)

Section 13 was amended by section 105(1) of the Finance Act 1989 (c. 26) and section 86(2) of the Finance Act 1994.

(2)

Subsections (3A) to (3D) of section 434 were inserted by paragraph 5(4) of Schedule 16 to the Finance Act 1994 and repealed in relation to accounting periods beginning on or after 6th April 1999 by paragraph 6(2) of Schedule 6 to the Finance (No. 2) Act 1997.

(3)

Section 88(4) was amended by section 45(2) of the Finance Act 1990 (c. 29).