Income Tax (Earnings and Pensions) Act 2003 section 60A

When a company qualifies as small for a tax year

Section 60A sets out the conditions under which a company is treated as a small company for the purposes of the employment-related securities rules in a given tax year.

• A company qualifies as small for a tax year if it meets one of two conditions, subject to the further rules in section 60C.
• The first condition is that the company's first financial year is not relevant to the tax year in question — meaning the company is essentially too new for any filing deadline to have passed before the tax year began.
• The second condition is that the small companies regime under the Companies Act 2006 applied to the company for its most recent financial year whose accounts filing deadline fell before the start of the tax year.
• A financial year is considered relevant to a tax year only if the deadline for filing the company's accounts and reports for that financial year ends before the beginning of the tax year.