Part 2

Plant and machinery allowances
Chapter 4

First-year qualifying expenditure

Expenditure of small or medium-sized enterprises

Expenditure of small or medium-sized enterprises: companies
47
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.