477Small LLPs: conditions for exemption from audit

1

An LLP that F1qualifies as a small LLP in relation to a financial year is exempt from the requirements of this Act relating to the audit of accounts for that year.

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4

For the purposes of this section—

a

whether an LLP qualifies as a small LLP shall be determined in accordance with section 382(1) to (6), F3...

F3b

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5

This section has effect subject to—

• section 475(2) and (3) (requirements as to statements to be contained in balance sheet),

• section 478 (LLPs excluded from small LLPs exemption), and

• section 479 (availability of small LLPs exemption in case of group LLP).

478LLPs excluded from small LLPs exemption

An LLP is not entitled to the exemption conferred by section 477 (small LLPs) if it was at any time within the financial year in question—

a

an LLP whose securities are admitted to trading on a F9UK regulated market,

b

an LLP that—

i

is an authorised insurance company, a banking LLP, an e-money issuer, a MiFID investment firm or a UCITS management company, F7or

ii

carries on insurance market activity, or

F8iii

is a scheme funder of a Master Trust scheme within the meanings given by section 39(1) of the Pension Schemes Act 2017 F10or section 39(1) of the Pension Schemes Act (Northern Ireland) 2021 (interpretation of Part 1) or

c

an employers' association as defined in section 122 of the Trade Union and Labour Relations (Consolidation) Act 1992 (c.52) or Article 4 of the Industrial Relations (Northern Ireland) Order 1992 (S.I. 1992/807 (N.I. 5)).

479Availability of small LLPs exemption in case of group LLP

1

An LLP is not entitled to the exemption conferred by section 477 (small LLPs) in respect of a financial year during any part of which it was a group LLP unless—

F4a

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.

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3

An LLP is not excluded by subsection (1) if, throughout the whole of the period or periods during the financial year when it was a group LLP, it was both a subsidiary undertaking and dormant.

4

In this section—

a

“group LLP” means an LLP that is a parent LLP or a subsidiary undertaking, and

b

“the group”, in relation to a group LLP, means that LLP 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 (LLPs qualifying as small: parent LLPs);

b

“ineligible group” has the meaning given by section 384(2) and (3);

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6

The provisions mentioned in subsection (5) apply for the purposes of this section as if all the bodies corporate in the group were LLPs or companies.