Corporation Tax Act 2009 section 1121

"Larger SME"

Section 1121 defines the term "larger SME" as used in the research and development tax relief provisions of Part 13 of the Corporation Tax Act 2009.

• A "larger SME" is a company that qualifies as a small or medium-sized enterprise only by virtue of qualification 1 in section 1120.
• Qualification 1 in section 1120 applies to companies that exceed the standard SME size thresholds but still fall within the broader SME definition due to specific qualifying conditions.
• The term provides a convenient label to distinguish these companies from smaller SMEs for the purposes of research and development relief.
• The definition originates from provisions formerly found in paragraphs 15A and 16A of Schedule 13 to the Finance Act 2002.