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HMRC internal manual

Senior Accounting Officer Guidance

HM Revenue & Customs
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What is a qualifying company: conditions for a qualifying company: conditions

A company (and this includes a dormant company or a company in liquidation or administration) must satisfy the following conditions to be a qualifying company for a financial year, see SAOG10500.

It must

  • be a company incorporated in the UK in accordance with the Companies Act 2006, see SAOG11220, for the financial year and
  • either alone or when its results are aggregated with other UK companies in the same group, have

    • a turnover, see SAOG11230 and SAOG11240, of more than £200 million, and / or
    • a relevant balance sheet total, see SAOG11260 and SAOG11270, of more than £2 billion

for the preceding financial year.

For example, for the financial year ended 31 December 2015, the responsible officers of a company must consider

  • was it a UK incorporated company for the year ended 31 December 2015 and
  • what were its turnover and balance sheet amounts, if appropriate aggregated with those of other UK incorporated companies in the same group, for the financial year ended 31 December 2014?

Whether or not a company is tax resident in the UK is not relevant for the purpose of the Senior Accounting Officer legislation as the legislation is based upon the country of incorporation and not the territories in which it operates.