2 Amendment of section 249A
1 Section 249A of the 1985 Act (exemptions from audit for certain categories of small company) is amended as follows.
Section 249A was inserted by regulation 2 of S.I.1994/1935.
2 In subsection (2), for the words “a company”, substitute the words “a company which is a charity and”.
3 In subsection (3)(b) for “£90,000” substitute “£350,000”.
4 Insert the following subsection after subsection (3)—

“(3A) In relation to any company which is a charity, subsection (3)(b) shall have effect with the substitution—
(a) for the reference to turnover of a reference to gross income, and
(b) for the reference to £350,000 of a reference to £90,000.”

5 In subsection (4)—
(a) for the words “a company” substitute the words “a company which is a charity”, and
(b) in paragraph (b)—
(i) for the word “turnover” substitute the words “gross income”, and
(ii) for “£350,000” substitute “£250,000”.
6 Subsection (5) is hereby repealed.
7 Insert the following subsection after subsection (6)—

“(6A) A company is entitled to the exemption conferred by subsection (1) or (2) notwithstanding that it falls within paragraph (a) or (b) of section 250(1).”

8 Section 249A shall be deemed, since the commencement of that section, to have had effect as amended by paragraph (7).