C5Part 16Audit

Annotations:
Modifications etc. (not altering text)

C3C4Chapter 1Requirement for audited accounts

Annotations:
Modifications etc. (not altering text)
C4

Pt. 16 Ch. 1 applied (with modifications) (6.4.2008) by The Partnerships (Accounts) Regulations 2008 (S.I. 2008/569), regs. 4, 7, Sch. Pt. 1

Exemption from audit: small companies

C1C2479Availability of small companies exemption in case of group company

1

A company is not entitled to the exemption conferred by section 477 (small companies) in respect of a financial year during any part of which it was a group company unless—

F1a

the group—

i

qualifies as a small group in relation to that financial year, and

ii

was not at any time in that year an ineligible group, or

b

subsection (3) applies.

2

F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

A company is not excluded by subsection (1) if, throughout the whole of the period or periods during the financial year when it was a group company, it was both a subsidiary undertaking and dormant.

4

In this section—

a

“group company” means a company that is a parent company or a subsidiary undertaking, and

b

“the group”, in relation to a group company, means that company together with all its associated undertakings.

For this purpose undertakings are associated if one is a subsidiary undertaking of the other or both are subsidiary undertakings of a third undertaking.

5

For the purposes of this section—

a

whether a group qualifies as small shall be determined in accordance with section 383 (companies qualifying as small: parent companies);

b

“ineligible group” has the meaning given by section 384(2) and (3);

c

F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

d

F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

e

F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

The provisions mentioned in subsection (5) apply for the purposes of this section as if all the bodies corporate in the group were companies.