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

When a company qualifies as small for a tax year: joint ventures

Section 60B explains how joint venture arrangements affect the assessment of whether a company qualifies as small under the small companies regime for a given financial year.

• Where a company is jointly controlled by two or more persons at the end of a financial year, and one or more of those persons are undertakings (called "joint venturer undertakings"), special grouping rules apply for the purposes of the small company size test.
• If the jointly controlled company is already a parent company, the joint venturer undertakings are treated as members of that company's group when assessing size.
• If the jointly controlled company is not a parent company, it and the joint venturer undertakings are treated as forming a group, with the company itself deemed to be the parent.
• The term "jointly controlled" takes its meaning from international accounting standards relating to joint ventures, and other terms used follow the definitions in the Companies Act 2006.