Capital Allowances Act 2001 section 49

Whether company is a member of a large or medium-sized group

Section 49 sets out how to determine whether a company belongs to a large group or a large or medium-sized group, which affects its eligibility for certain capital allowance provisions under section 47.

• A company is a member of a large group if it is the parent or subsidiary of a group that does not qualify as small or medium-sized under companies legislation at the time the expenditure is incurred.
• A company is a member of a large or medium-sized group if it is the parent or subsidiary of a group that does not qualify as small under companies legislation at the time the expenditure is incurred.
• If arrangements exist at the time expenditure is incurred that, had they taken effect, would have placed the company (or a successor company) in a large or large/medium-sized group, the company is treated as being a member of that group.
• Group size classifications are determined by reference to the relevant companies legislation, and a successor company is one that takes over a trade under a company reconstruction without a change of ownership.