Finance Act 2022

“Company” and “qualifying company” U.K.

2 (1) “Company” means a body corporate (wherever incorporated) but does not include—

(a) a limited liability partnership that is a partnership for the purposes of this Schedule (see paragraph 4);

(b) a public authority as defined by the Freedom of Information Act 2000 or a Scottish public authority as defined by the Freedom of Information (Scotland) Act 2002 (asp 13);

(c) an open-ended investment company within the meaning of section 613 of CTA 2010;

(d) a registered society within the meaning of—

(i) the Co-operative and Community Benefit Societies Act 2014, or

(ii) the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 (c. 24 (N.I.)).

(2) A company is a “qualifying company” in any financial year if, in the previous financial year, the company had either or both of the following—

(a) relevant UK turnover of more than £200 million;

(b) a relevant UK balance sheet total of more than £2 billion.

(3) If the company was not a member of a group at the end of the previous financial year—

(a) “relevant UK turnover” means the company’s UK turnover;

(b) “relevant UK balance sheet total” means the company’s UK balance sheet total.

(4) If the company was a member of a group at the end of the previous financial year—

(a) “relevant UK turnover” means the aggregate UK turnover of the company (“C”) and each other company that was—

(i) a member of the same group as C at the end of C’s previous financial year, and

(ii) within the charge to corporation tax on income at any time during C’s previous financial year;

(b) “relevant UK balance sheet total” means the aggregate UK balance sheet totals of C and each other such company.

(5) If the financial year of a company that was a member of the same group as C does not end on the same day as C’s previous financial year, the figures for that company that are to be included in the aggregate figures are the figures for that company’s financial year ending last before the end of C’s previous financial year.

(6) The Treasury may by regulations provide that a company of a description specified in the regulations is not a qualifying company for the purposes of this Schedule (or any such purpose specified in the regulations).