Part 5

Enterprise investment scheme
Chapter 8

Supplementary and general

Interpretation

Knowledge-intensive company reaching turnover of £200,000
252B
1
This section has effect for the purposes of section 175A(2)(a)(ii) (alternative initial investing period in case of knowledge-intensive company).
2
Where—
a
the annual turnover of the issuing company in relation to an accounting period (see subsection (3)) is £200,000 or more, and
b
the annual turnover for the company in relation to each previous accounting period is less than £200,000,
the company is treated as reaching an annual turnover of £200,000 or more by reference to the specified date (see subsection (4)).
3
The annual turnover in relation to an accounting period is—
a
the turnover for that accounting period (if the accounting period is for 12 months), or
b
the turnover for the period of 12 months ending when that accounting period ends (if not).
4
The specified date is—
a
in the case of an accounting period of 12 months or less, the last day of that accounting period;
b
in the case of an accounting period of more than 12 months, the last day of the period of 12 months beginning when that accounting period begins.
5
The turnover of the issuing company for a period (“
the period
”) is treated for the purposes of this section as including the relevant turnover of any company that is a member of the same group as the issuing company during the whole or any part of the period (a “group company”).
6
The relevant turnover of a group company is—
a
its turnover for the period, if the group company is a member of the same group as the issuing company for the whole of the period;
b
if the group company is a member of the same group as the issuing company for part of the period, its turnover for that part of the period.
7
Any necessary apportionments of turnover are to be made, on a time basis according to the respective lengths of the periods in question, for the purposes of subsections (3)(b) and (6).
8
In this section “
turnover
” has the meaning given by section 474(1) of the Companies Act 2006 and is to be determined by reference to—
a
the accounts of the company, and
b
amounts recognised for accounting purposes.
S. 252B inserted (6.4.2018) by Finance Act 2018 (c. 3), Sch. 4 paras. 6, 10; S.I. 2018/931, reg. 3(a)