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Back to FAQSmall and Medium-Sized Company Exemptions

Are There Special Rules For Small and Medium-Sized Groups?

Yes, a parent company need not prepare group accounts or send them to the Registrar if the group is small or medium-sized and none of its member companies is: a public company, a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on a regulated activity, or a person who carries on insurance market activity.

To qualify as small, a group of companies must meet at least two of the following conditions:

  • aggregate turnover must be £2,800,000 net (£3,360,000 gross) or less;
  • the aggregate balance sheet total must be £1,400,000 net (£1,680,000 gross) or less;
  • the aggregate average number of employees must be 50 or fewer.

***Please note: New accounting exemption thresholds apply to financial years ending on or after 30 January 2004.

To qualify as small, a group must meet at least two of the following conditions:

  • aggregate turnover must be £5.6 million net (£6.72 million gross) or less;
  • the aggregate balance sheet total must be £2.8 million net (or £3.36 million gross);
  • the aggregate average number of employees must be 50 or fewer.

To qualify as medium-sized, a group must satisfy at least two of the following conditions:

  • its aggregate turnover must be £11,200,000 net (£13,440,000 gross) or less;
  • the aggregate balance sheet total must be £5,600,000 net (£6,720,000 gross) or less;
  • the aggregate average number of employees must be 250 or fewer.

***Please note: New accounting exemption thresholds apply to financial years ending on or after 30 January 2004.

To qualify as medium-sized, a group must meet at least two of the following conditions:

  • aggregate turnover must be £22.8 million net (or £27.36 million gross);
  • the aggregate balance sheet total must be £11.4 million net (or £13.68 million gross);
  • the aggregate average number of employees must be 250 or fewer. Top Of Page

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