Section 1120B — Corporation Tax Act 2009: Enterprise treated as an SME where acquired by an SME

Enterprise treated as an SME where acquired by an SME 1120B 1 This section applies, in relation to an accounting period, where the following conditions are met.

2 The first condition is that, at the start of the accounting period, an enterprise (“ E ”) was not a small or medium-sized enterprise by reason only that a partner enterprise or linked enterprise to which E was related exceeded the employee limit or either of the financial limits.

3 The second condition is that, during the accounting period, control of E was acquired by a company that, at the time of the acquisition, was a small or medium-sized enterprise.

4 E is to be treated as if it were a small or medium-sized enterprise for the accounting period.

5 In subsection (3) “ control ” has the same meaning as in section 1124 of CTA 2010.