Section 12A — Finance Act 2008: The number of employees requirement

The number of employees requirement 12A 1 The number of employees requirement in the case of a single company is that the full-time equivalent employee number for it is less than 250.

2 The number of employees requirement in the case of a parent company is that the sum of—

a the full-time equivalent employee number for it, and b the full-time equivalent employee numbers for each of its qualifying subsidiaries, is less than 250.

3 The full-time equivalent employee number for a company is calculated as follows— Step 1 Find the number of full-time employees of the company. Step 2 Add, for each employee of the company who is not a full-time employee, such fraction as is just and reasonable. The result is the full-time equivalent employee number.

4 In this paragraph references to an employee—

a include a director, but b do not include—

i an employee on maternity or paternity leave, or ii a student on vocational training.