# The Corporation Tax (Instalment Payments) Regulations 1998, Regulation 3: Large and very large companies

Extent: E+W+S+N.I.

(1) Subject to paragraphs (3) to (5), a company (other than a relevant entity or a responsible member) is a large company by virtue of this regulation in respect of an accounting period if its profits in that period exceed £1.5 million but do not exceed £20 million.
(2) Subject to paragraphs (3) and (4), a company (other than a relevant entity or a responsible member) is a very large company by virtue of this regulation in respect of an accounting period if its profits in that period exceed £20 million.
(3) The amounts of profits specified in paragraphs (1) and (2) are subject to the provisions in paragraphs (8) and (10).
(4) A company is not in respect of an accounting period—
(a) a large company by virtue of paragraph (1); or
(b) a very large company by virtue of paragraph (2),
if its total liability for the period does not exceed £10,000 (or such amount as applies by virtue of paragraph (10)).
(5) A company is not in respect of an accounting period (“AP”) a large company by virtue of this regulation where the profits of the company in AP do not exceed £10 million (or such amount as applies by virtue of paragraphs (8) and (10)) and—
(a) during any part of the period (“AP-12”) of 12 months immediately preceding AP, the company did not exist or did not have an accounting period; or
(b) in respect of any accounting period which fell within or ended in AP-12 the company was not—
(i) a large company other than by reason of the operation of this paragraph, or
(ii) a very large company.
(6) Paragraph (8) applies where a company has one or more related associated companies in an accounting period.
(7) For the purposes of this regulation, the number (“N”) of related associated companies of a company in an accounting period (“AP”) is to be determined—
(a) as the number existing at the end of the accounting period (“AP-1”) immediately preceding AP; or
(b) where there is no AP-1 or AP-1 did not end on the day before AP commenced, as the number existing at the commencement of AP.
(8) Where this paragraph applies by virtue of paragraph (6), whether a company is (or is not) a large company or a very large company in respect of an accounting period by virtue of this regulation is to be determined with the following modifications—
(a) in paragraph (1), for “£1.5 million” substitute “£1.5 million/1+N”;
(b) in paragraphs (1) and (2), for “£20 million” substitute “£20 million/1+N”; and
(c) in paragraph (5), for “£10 million” substitute “£10 million/1+N,
but the amounts in sub-paragraphs (a), (b) and (c) are subject to the provisions in paragraph (10).
(9) Except where paragraph (4) applies, whether a company is (or is not) a large company or a very large company by virtue of this regulation is to be determined as it would have been determined apart from sections 330 (supplementary charge in respect of ring fence trades) and 331 (meaning of “financing costs” etc) of CTA 2010 and apart from the provision made by the Energy (Oil and Gas) Profits Levy Act 2022.
(10) Where an accounting period is a period of less than 12 months and paragraph (11) does not apply, whether a company is (or is not) a large company or a very large company in respect of that period by virtue of this regulation is to be determined by making a proportionate reduction to the following amounts—
(a) £10,000 in paragraph (4);
(b) £1.5 million in paragraph (1) or £1.5 million/1+N in that paragraph where paragraph (8) applies;
(c) £10 million in paragraph (5) or £10 million/1+N in that paragraph where paragraph (8) applies; and
(d) £20 million in paragraphs (1) and (2) or £20 million/1+N in those paragraphs where paragraph (8) applies.
(11) A company which—
(a) is chargeable to corporation tax for an accounting period only because of a chargeable gain accruing to the company on the disposal of an asset, and
(b) would, apart from this paragraph, be a very large company by virtue of this regulation in respect of the accounting period,
is to be treated for the purposes of these regulations as if it were a large company by virtue of paragraph (1).

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Source: https://www.legislation.gov.uk/uksi/1998/3175/regulation/3 (the official version)
Page: https://openlegislation.uk/corporation-tax-instalment-payments-regulations-1998/regulation-3
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.