Part 16Audit
Chapter 1Requirement for audited accounts
Exemption from audit: small companies
479Availability of small companies exemption in case of group company
(1)
A company is not entitled to the exemption conferred by section 477 (small companies) in respect of a financial year during any part of which it was a group company unless—
F1(a)
the group—
(i)
qualifies as a small group in relation to that financial year, and
(ii)
was not at any time in that year an ineligible group, or
(b)
subsection (3) applies.
(2)
F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)
A company is not excluded by subsection (1) if, throughout the whole of the period or periods during the financial year when it was a group company, it was both a subsidiary undertaking and dormant.
(4)
In this section—
(a)
“group company” means a company that is a parent company or a subsidiary undertaking, and
(b)
“the group”, in relation to a group company, means that company together with all its associated undertakings.
For this purpose undertakings are associated if one is a subsidiary undertaking of the other or both are subsidiary undertakings of a third undertaking.
(5)
For the purposes of this section—
(a)
whether a group qualifies as small shall be determined in accordance with section 383 (companies qualifying as small: parent companies);
(b)
“ineligible group” has the meaning given by section 384(2) and (3);
(c)
F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d)
F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(e)
F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6)
The provisions mentioned in subsection (5) apply for the purposes of this section as if all the bodies corporate in the group were companies.