Schedule 46

Part of Finance Bill – in a Public Bill Committee at 12:45 pm on 23 June 2009.

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‘Meaning of “qualifying company”

17 (1) A company is a qualifying company in relation to a financial year if the qualification test was satisfied in the previous financial year (subject to any regulations under sub-paragraph (2)).

(1A) The qualification test is that the company satisfied either or both of the following requirements—

1. Relevant turnover

More than £200 million

2. Relevant balance sheet total

More than £2 billion.

(1B) If the company was not a member of a group at the end of the previous financial year—

(a) “relevant turnover” means the company’s turnover, and

(b) “relevant balance sheet total” means the company’s balance sheet total.

(1C) If the company was a member of a group at the end of the previous financial year—

(a) “relevant turnover” means the aggregate turnover of the company (“C”) and any other company that was a member of the same group as C at the end of C’s previous financial year, and

(b) “relevant balance sheet total” means the aggregate balance sheet totals of C and any such company.

(1D) If the financial year of a company that was a member of the same group as C does not end on the same day as C’s previous financial year, the figures for that company that are to be included in the aggregate figures are the figures for that company’s financial year ending last before the end of C’s previous financial year.

(1E) “Turnover”, in relation to a company, has the same meaning as in Part 15 of the Companies Act 2006 (see section 474 of that Act).

(1F) “Balance sheet total”, in relation to a company and a financial year, means the aggregate of the amounts shown as assets in the company’s balance sheet as at the end of the financial year.’.

Amendment 297, in schedule 46, page 343, line 17, leave out ‘large’ and insert ‘qualifying’.

Amendment 298, in schedule 46, page 343, leave out lines 20 to 22 and insert—

‘( ) “Senior accounting officer”, in relation to a company that is not a member of a group, means the director or officer who, in the company’s reasonable opinion, has overall responsibility for the company’s financial accounting arrangements.

( ) “Senior accounting officer”, in relation to a company that is a member of a group, means the group director or officer who, in the company’s reasonable opinion, has overall responsibility for the company’s financial accounting arrangements.

( ) “Group director or officer”, in relation to a company, means a director or officer of the company or of a relevant body that is a member of the same group as the company.

( ) A person may be the senior accounting officer of more than one company.’.

Amendment 299, in schedule 46, page 343, leave out lines 29 to 32.

Amendment 300, in schedule 46, page 343, line 35, leave out from ‘“company”’ to end of line 36 and insert

‘has the same meaning as in the Companies Acts (see section 1(1) of the Companies Act 2006) but does not include a company that is an open-ended investment company (within the meaning of section 468A of ICTA) or an investment trust (within the meaning of section 842 of ICTA);’.

Amendment 301, in schedule 46, page 343, leave out lines 39 and 40.

Amendment 302, in schedule 46, page 344, line 2, at end insert—

‘“relevant body” means a company or other body corporate but does not include a limited liability partnership;’.

Amendment 303, in schedule 46, page 344, leave out lines 3 to 5.

Amendment 304, in schedule 46, page 344, line 7, at end insert—

‘(2) For the purposes of this Schedule—

(a) a relevant body is a member of a group if—

(i) another relevant body is its 51 per cent subsidiary, or

(ii) it is a 51 per cent subsidiary of another relevant body, and

(b) two relevant bodies are members of the same group if—

(i) one is a 51 per cent subsidiary of the other, or

(ii) both are 51 per cent subsidiaries of a third relevant body.

(3) Section 838 of ICTA (meaning of “51 per cent subsidiary”) applies for the purposes of this Schedule as it applies for the purposes of the Corporation Tax Acts (subject to the modification in sub-paragraph (4)).

(4) It applies as if references in that section to a body corporate were to a relevant body.’.—(Sarah McCarthy-Fry.)