PART 1The Small Business Commissioner

“Small businesses”

I12Small businesses in relation to which the Commissioner has functions

1

In this Part “small business” means a relevant undertaking which—

a

has a headcount of staff of less than 50,

b

if the business threshold condition applies to the relevant undertaking, meets that condition, and

c

is not a public authority.

2

The Secretary of State may by regulations (“SBC scope regulations”) make further provision about the meaning of “small business” in this Part.

3

For the purposes of subsection (1)(b), the business threshold condition applies to a relevant undertaking if—

a

SBC scope regulations provide for that condition to apply in relation to all relevant undertakings, or

b

the relevant undertaking falls within a description of undertakings to which SBC scope regulations apply that condition.

4

A relevant undertaking meets the business threshold condition if it has a turnover, or balance sheet total, of an amount less than or equal to the small business threshold.

5

SBC scope regulations may (amongst other things) make provision about—

a

the date (“the assessment date”) on which, or the period (“the assessment period”) for which, a relevant undertaking must meet a requirement of subsection (1)(a) or (b) in order to be a small business;

b

the calculation of the headcount of staff, turnover or balance sheet total of a relevant undertaking at the assessment date or for the assessment period;

c

the circumstances in which a relevant undertaking which has been established for less than a complete assessment period is to be regarded as meeting a requirement for that period.

6

SBC scope regulations may provide that a relevant undertaking of a specified description is not a small business even if it falls within the definition.

7

SBC scope regulations may—

a

make transitional or transitory provision or savings;

b

make different provision for different purposes.

8

SBC scope regulations are to be made by statutory instrument.

9

A statutory instrument containing SBC scope regulations may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

10

In this section—

  • “balance sheet total”, “headcount of staff”, “turnover” and “small business threshold” have such meanings as may be specified;

  • relevant undertaking” means a person who is carrying on one or more businesses and whose registered office or principal place of business is in the United Kingdom;

  • specified” means specified in SBC scope regulations.