Section 279E The lower limit and the upper limitF1

(1)

This section gives the meaning in this Chapter of “the lower limit” and “the upper limit” in relation to an accounting period of a company (“A”).

(2)

F2If A has no associated company in the accounting period—

(a)

the lower limit is F3£50,000, and

(b)

the upper limit is F4£250,000.

(3)

F5If A has one or more associated companies in the accounting period—

(a)

the lower limit is—F6

\frac{£ 300,000}{(1 + N)}

and

(b)

the upper limit is—F7

\frac{£ 1, 500,000}{(1 + N)}

where N is the number of those related 51% group companies.

(4)

For an accounting period of less than 12 months the lower limit and the upper limit are proportionately reduced.

Annotations

F1: Pt. 8 Ch. 3A inserted (with effect in accordance with Sch. 1 para. 22 of the amending Act) by Finance Act 2014 (c. 26), Sch. 1 para. 5(3)
F2: Words in s. 279E(2) substituted (with effect in accordance with Sch. 1 para. 34 of the amending Act) by Finance Act 2021 (c. 26), Sch. 1 para. 9(2)(a)
F3: Sum in s. 279E(2)(a) substituted (with effect in accordance with Sch. 1 para. 34 of the amending Act) by Finance Act 2021 (c. 26), Sch. 1 para. 9(2)(b)
F4: Sum in 2. 279E(2)(b) substituted (with effect in accordance with Sch. 1 para. 34 of the amending Act) by Finance Act 2021 (c. 26), Sch. 1 para. 9(2)(c)
F5: Words in s. 279E(3) substituted (with effect in accordance with Sch. 1 para. 34 of the amending Act) by Finance Act 2021 (c. 26), Sch. 1 para. 9(3)(a)
F6: S. 279E(3)(a): "£50,000" substituted for "£300,000" (with effect in accordance with Sch. 1 para. 34 of the amending Act) by Finance Act 2021 (c. 26), Sch. 1 para. 9(3)(b)
F7: S. 279E(3)(b): “£250,000” substituted for “£1,500,000” (with effect in accordance with Sch. 1 para. 34 of the amending Act) by Finance Act 2021 (c. 26), Sch. 1 para. 9(3)(c)