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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 not already a qualifying company

If the company joining the group is not a qualifying company in the financial year in which it joins the group it could only become a qualifying company in the following financial year.

This is because the aggregation of its turnover and / or balance sheets assets with those of the acquiring company or group for the financial year in which it was acquired could only be done after that financial year had ended: it was not a member of the group at its preceding financial year end.

This situation can apply when a company is newly incorporated and becomes part of a group or as described in the first paragraph above when an existing company with turnover and/or assets below qualification level (see SAOG11210) is acquired by the group during the financial year.

See SAOG11302 for an example.