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HMRC internal manual

Senior Accounting Officer Guidance

From
HM Revenue & Customs
Updated
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What is a qualifying company: conditions for a qualifying company: Company joining a group is already a qualifying company

In a takeover scenario, if the company joining the group is already a qualifying company in the financial year in which the takeover happens it will continue to be a qualifying company for that financial year.

Example

Company A has its financial year end on 31 December 2013. In the early part of that year its responsible officers determine that it is a qualifying company for that financial year. They determine this because it is UK incorporated and because of its preceding year results.

In June 2013 it is taken over by company B. Company A is still a qualifying company - its UK incorporation and the results of its preceding year stand as before.

See SAOG11301 for the situation where the company joining the group is not already a qualifying company.