tool: Step 3 - Members of the group
The main consequences of the specific rules
(explained in more detail
- No matter how small a company
may be, it cannot benefit from the exemption
unless its entire
worldwide group (subsidiaries, sister companies,
parents, and ultimate
majority shareholders) meets the thresholds on a
Once you have determined the taxpayer's group, using
below, click here
to continue with Step 3.
- No matter how far an individual is below the
thresholds on a personal basis, they may not be
exempt if they exceed
the thresholds when combined with any company
The rules for determining the taxpayer's "group"
for the purposes of measuring whether the taxpayer
is small are based
on a recommendation by the EU Commission. They
are complex and
perhaps a little ambiguous, but we will concentrate
here on the meaning
in 'plain vanilla' situations. The full rules
are in Annex C of
the document that can be viewed/downloaded here.
In most cases, the starting point is going to be
either the taxpayer's
own accounts or, if they exist, the "consolidated
accounts in which the
enterprise is included through consolidation".
If the taxpayer is
a company, this appears to mean the consolidated
accounts of the
taxpayer's ultimate parent company.
To this must be added the data for:
- Linked enterprises - explained here
- Partner enterprises - explained here
The EU definition refers to enterprises. More
about the meaning
of this term is here.
Certain business creation investors are
excluded. Click here
to learn more.
Continue with Step
The 'small print'
comments on this page and elsewhere on
this website are of a
general nature. It is not
practicable in a general review such as
to consider every convolution of the UK
transfer pricing rules or of
any other tax law that may be
relevant. Moreover, these pages
naturally do not take into account the
specific facts relating to any
particular taxpayer. Therefore,
although the guidance in this
should give a good indication of the
likely position under the transfer
pricing rules, taxpayers should obtain
professional advice to verify
the position, or carry out their own
TPS nor its affiliates
make any representation regarding the
completeness or accuracy thereof and they
accept no responsibility for
any loss or damage incurred as a result of
any user acting or
refraining from acting upon anything
contained on these pages or upon
its omission therefrom.