Section 252B — Income Tax Act 2007: Knowledge-intensive company reaching turnover of £200,000

Knowledge-intensive company reaching turnover of £200,000 252B 1 This section has effect for the purposes of section 175A(2)(a)(ii) (alternative initial investing period in case of knowledge-intensive company).

2 Where—

a the annual turnover of the issuing 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 issuing 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 issuing 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 issuing company for the whole of the period;

b if the group company is a member of the same group as the issuing 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.