Sch 7 para 20C
(1) A parent company is exempted under this paragraph— (a) in relation to the parent company’s first financial year if the qualifying conditions in sub-paragraph (2) are met in that year by the group headed by it; (b) in relation to a subsequent financial year of the parent company— (i) if the qualifying conditions are met in that year and the preceding financial year by the group headed by the parent company; (ii) if— (aa) the qualifying conditions are met in that year by the group, and (bb) the parent company was exempted in relation to the preceding financial year; or (iii) if— (aa) the qualifying conditions were met in the preceding financial year by the group, and (bb) the parent company was exempted in relation to the preceding financial year. (2) The qualifying conditions referred to in sub-paragraph (1) are met by a group in a year in which it satisfies two or more of the following requirements— (3) For the purposes of sub-paragraph (2), the aggregate figures are to be ascertained by aggregating the relevant figures determined in accordance with paragraph 20B for each member of the group. (4) In relation to the aggregate figures for turnover and balance sheet total— (a) “net” means after any set-offs and other adjustments made to eliminate group transactions— (i) in the case of Companies Act accounts, in accordance with regulations under section 404 of the 2006 Act, (ii) in the case of IAS accounts, in accordance with international accounting standards; (b) “gross” means without those set-offs and other adjustments; and (c) a company may satisfy any requirements in sub-paragraph (2) on the basis of either the net or the gross figure. (5) For the purposes of sub-paragraph (2)— (a) the figures for each subsidiary undertaking must be those included in its individual accounts for the relevant financial year, that is— (i) if its financial year ends with that of the parent company, that financial year, and (ii) if not, its financial year ending last before the end of the financial year of the parent company; or (b) if those figures cannot be obtained without disproportionate expense or undue delay, the latest available figures may be taken.