Qualifying subsidiary definition

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Dormant companies—accounts and audit

Dormant companies—accounts and audit A dormant company is constituted and managed in the same way as any other company. However, the requirements relating to accounts and audit that generally apply to a company are relaxed in relation to a dormant company. What is a dormant company? A company is dormant during any period in which it has had no significant accounting transaction. A significant accounting transaction is one which the company should enter in its accounting records pursuant to section 386 of the Companies Act 2006 (CA 2006) and does not include: • any transaction arising from the taking of shares in the company by a subscriber to the memorandum of association as a result of an undertaking of his in connection with the formation of the company, or • any transaction consisting of the payment of: ◦ a fee paid to Companies House on a change of the company's name ◦ a fee paid to Companies House on the re-registration of a company ◦ a...

Subsidiary companies—audit exemption

Subsidiary companies—audit exemption STOP PRESS: A significant restructuring of the UK listing regime came into effect on 29 July 2024 which included the removal of the premium and standard listing segments and the creation of a single listing category for equity shares in commercial companies. The commercial companies category is heavily disclosure-based and sits alongside other listing categories such as the shell companies, secondary listing and closed ended investment fund categories. A new UK Listing Rules sourcebook came into force to implement the changes and the previous Listing Rules sourcebook was revoked. For further information, see Practice Note: Reform of the UK listing regime—fundamentals. This Practice Note reflects the listing regime as it was prior to 29 July 2024. If a company prepares annual accounts for a financial year, they must be audited, unless the company is exempt from audit. Qualifying subsidiary exemption from the requirement to audit accounts If a subsidiary company satisfies certain conditions, it may benefit from an exemption from the requirement to audit individual accounts...

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Qualifying holding advance assurance letter—VCT

Qualifying holding advance assurance letter—VCT Venture Capital Reliefs Team HM Revenue and Customs WMBC BX9 1QL [Insert date] [ Commercially sensitive information ] Dear [insert organisation name] Proposed investment by venture capital trust—request for advance assurance of qualifying holding in [name of company] 1 Background to the advance assurance request and our authority to act as agent 1.1 We are writing to request the advance assurance of HM Revenue & Customs (HMRC) that: 1.1.1 the shares [and securities] proposed to be issued by the [name of company] (the Company) to [name of VCT] (the VCT), which is managed by [insert name of VCT manager], as outlined in this letter (the Relevant Holding) will constitute a qualifying holding for the purposes of Chapter 4 of Part 6 to the Income Tax Act 2007 (ITA 2007); and 1.1.2 the [insert number of shares] [insert nominal value] ordinary shares proposed to be issued by the Company to the VCT at a price of [insert amount]...