Part 6Venture capital trusts

Chapter 6Supplementary and general

Supplementary

331BF1Knowledge-intensive company reaching turnover of £200,000

1

This section has effect for the purposes of sections 280C(3)(a)(ii) and 294A(2)(a)(ii) (alternative initial investing period in case of knowledge-intensive company).

2

Where—

a

the annual turnover of the relevant company in relation to an accounting period (see subsection (3)) is £200,000 or more, and

b

the annual turnover for the company in relation to each previous accounting period is less than £200,000,

the company is treated as reaching an annual turnover of £200,000 or more by reference to the specified date (see subsection (4)).

3

The annual turnover in relation to an accounting period is—

a

the turnover for that accounting period (if the accounting period is for 12 months), or

b

the turnover for the period of 12 months ending when that accounting period ends (if not).

4

The specified date is—

a

in the case of an accounting period of 12 months or less, the last day of that accounting period;

b

in the case of an accounting period of more than 12 months, the last day of the period of 12 months beginning when that accounting period begins.

5

The turnover of the relevant company for a period (“the period”) is treated for the purposes of this section as including the relevant turnover of any company that is a member of the same group as the relevant company during the whole or any part of the period (a “group company”).

6

The relevant turnover of a group company is—

a

its turnover for the period, if the group company is a member of the same group as the relevant company for the whole of the period;

b

if the group company is a member of the same group as the relevant company for part of the period, its turnover for that part of the period.

7

Any necessary apportionments of turnover are to be made, on a time basis according to the respective lengths of the periods in question, for the purposes of subsections (3)(b) and (6).

8

In this section “turnover” has the meaning given by section 474(1) of the Companies Act 2006 and is to be determined by reference to—

a

the accounts of the company, and

b

amounts recognised for accounting purposes.