Section 60C — Income Tax (Earnings and Pensions) Act 2003: When a company qualifies as small for a tax year: subsidiaries

When a company qualifies as small for a tax year: subsidiaries 60C 1 A company does not qualify as small for a tax year by reason of the condition in section 60A(3) being met if—

a the company is a member of a group at the end of its last financial year that is relevant to the tax year, b the company is not the parent undertaking of that group at the end of that financial year, and c the undertaking that is the parent undertaking of that group at that time does not qualify as small in relation to its last financial year that is relevant to the tax year.

2 Where the parent undertaking mentioned in subsection (1)(c) is not a company, sections 382 and 383 of the Companies Act 2006 have effect for determining whether the parent undertaking qualifies as small in relation to its last financial year that is relevant to the tax year as if references in those sections to a company and a parent company included references to an undertaking and a parent undertaking.

3 For the purposes of subsections (1)(c) and (2) a financial year of an undertaking that is not a company is “relevant to” a tax year if it ends at least 9 months before the beginning of the tax year.

4 For the purposes of this section, a financial year of a company is “relevant to” a tax year if the period for filing the company's accounts and reports for the financial year ends before the beginning of the tax year.

5 Expressions used in this section and in the Companies Act 2006 have the same meaning in this section as in that Act.