Only a few days to go: We’re raising £25,000 to keep TheyWorkForYou running and make sure people across the UK can hold their elected representatives to account.

Donate to our crowdfunder

Schedule 46

Part of Finance Bill – in a Public Bill Committee at 11:30 am on 23rd June 2009.

Alert me about debates like this

Photo of Sarah McCarthy-Fry Sarah McCarthy-Fry Parliamentary Secretary, HM Treasury 11:30 am, 23rd June 2009

Again, I hope to get back to the hon. Gentleman on that point.

As I was saying, the scope of the measure is broadly limited to the largest companies and groups that have a CRM. The legislation could technically be drafted to define the population as those companies with a CRM. However, it is not appropriate to use defining criteria that rely on HMRC’s administrative practices. Instead, we have identified objective criteria by reference to company turnover and asset value, which will very closely equate to the assignment of a CRM. That means that the measure will encompass the top 2,000 groups of companies.

For both singleton companies and groups of companies alike, those criteria are turnover of more than £200 million and/or a balance sheet total of more than £2 billion.  It is a test that brings banks within the scope of the measure, as otherwise they would fall outside its scope. The amendments will also ensure that the measure will apply only in relation to UK companies and their senior accounting companies, and not to foreign companies.