Section 1120A — Corporation Tax Act 2009: Enterprise treated as an SME where related enterprise becomes large

Enterprise treated as an SME where related enterprise becomes large 1120A 1 This section applies, in relation to an accounting period, where the following conditions are met.

2 The first condition is that, for the duration of the accounting period, an enterprise (“ E ”) is related to a partner enterprise or linked enterprise (“ F ”).

3 The second condition is that, at the start of the accounting period, both E and F are small or medium-sized enterprises.

4 The third condition is that, at the end of the accounting period, E is not a small or medium-sized enterprise by reason only that F has, during the accounting period, exceeded the employee limit or either of the financial limits.

5 Both E and F are to be treated as if they were small or medium-sized enterprises for the accounting period.