Capital Allowances Act 2001 section 47

Expenditure of small or medium-sized enterprises: companies

Section 47 sets out how to determine whether expenditure incurred by a company qualifies as expenditure of a small or medium-sized enterprise (SME) or a small enterprise for the purposes of first-year allowances.

• A company's expenditure counts as SME expenditure if the company qualifies as small or medium-sized under companies legislation and is not a member of a large group at the time the expenditure is incurred.
• A company's expenditure counts as small enterprise expenditure if the company qualifies as small under companies legislation and is not a member of a large or medium-sized group at the time the expenditure is incurred.
• The relevant size test is applied by reference to the company's financial year in which the expenditure is incurred, using the definitions in the Companies Act 1985 (or the Companies (Northern Ireland) Order 1986 for Northern Ireland companies).
• The section applies to companies and overseas companies within the meaning of the Companies Act 1985 or the equivalent Northern Ireland legislation.