Capital Allowances Act 2001

47 Expenditure of small or medium-sized enterprises: companies

(1) Use this section to decide whether expenditure incurred by a company is, for the purposes of this Chapter, incurred by—

(a) a small or medium-sized enterprise, or

(b) a small enterprise.

(2) The expenditure is incurred by a small or medium-sized enterprise if the company—

(a) qualifies (or is treated as qualifying) as small or medium-sized under the relevant companies legislation in relation to the financial year of the company in which the expenditure is incurred, and

(b) is not a member of a large group at the time when the expenditure is incurred.

(3) The expenditure is incurred by a small enterprise if the company—

(a) qualifies (or is treated as qualifying) as small under the relevant companies legislation in relation to the financial year of the company in which the expenditure is incurred, and

(b) is not a member of a large or medium-sized group at the time when the expenditure is incurred.

(4) Except in the case of a company formed and registered in Northern Ireland—

(a) “the relevant companies legislation” means section 247 of the Companies Act 1985 (c. 6), and

(b) “financial year” has the same meaning as in Part VII of the 1985 Act.

(5) In the case of such a company—

(a) “the relevant companies legislation” means Article 255 of the Companies (Northern Ireland) Order 1986 (S.I.1986/1032 (N.I.6)), and

(b) “financial year” has the same meaning as in Part VIII of the 1986 Order.

(6) “Company” means—

(a) a company, or an oversea company, within the meaning of the 1985 Act, or

(b) a company, or a Part XXIII company, within the meaning of the 1986 Order.