# Finance Act 2016, Paragraph 5


(1) A UK company is a “qualifying company” in any financial year (subject to any regulations under sub-paragraph (5)) if sub-paragraph (2) or (3) applies to it.
(2) This sub-paragraph applies to the company if, at the end of the previous financial year—
(a) it satisfied the qualification test for a UK company, and
(b) was not a member of a UK group or a UK sub-group.
(3) This sub-paragraph applies to the company if, at the end of the previous financial year—
(a) it was a member of a foreign group,
(b) the group met the qualification test for a group, and
(c) it was not a member of a UK sub-group of that foreign group.
(4) The qualification test for a UK company is that the company satisfied either or both of the following conditions (by reference to the previous financial year)—
1. The company's turnover
More than £200 million
2. The company's balance sheet total
More than £2 billion.
(5) The Treasury may by regulations provide that a company of a description specified in the regulations is not a qualifying company for the purposes of this Schedule (or any such purpose specified in the regulations).
(6) For the purposes of this paragraph a UK permanent establishment of a foreign relevant body is to be treated as if it were—
(a) a UK company, and
(b) if the foreign relevant body is a member of a UK group or a UK sub-group, a member of that group or sub-group.

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Source: https://www.legislation.gov.uk/ukpga/2016/24/schedule/19/paragraph/5 (the official version)
Page: https://openlegislation.uk/finance-act-2016/schedule-19/paragraph-5
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.