Corporation Tax Act 2009 section 1119

"Small or medium-sized enterprise"

Section 1119 defines what constitutes a "small or medium-sized enterprise" (SME) for the purposes of Part 13 of the Corporation Tax Act 2009.

• An SME is defined by reference to the EU Commission Recommendation (EC) No 2003/361, which covers micro, small and medium-sized enterprises based on staff headcount, turnover and balance sheet thresholds.
• The definition is subject to specific qualifications and modifications set out in sections 1120, 1120A and 1120B of the Act.
• Insurance companies are always treated as large companies for Chapter 2 purposes, regardless of their actual size, and therefore cannot qualify as SMEs under that chapter.
• The Treasury has the power to amend the SME definition by order, allowing changes to be made without primary legislation.