NEW Articles24 Sep 2025
The Advantages of the UK as a Location for a Holding Company
Although we have had some recent economic uncertainties, the UK remains a very attractive location to site an international holding company.
Articles
Here we set out the new thresholds and the required criteria
On 6 April 2025 new UK company size regulations come into effect.
These changes follow ‘The Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024’ that were laid before Parliament in December 2024.
This table sets out the new and existing thresholds that will apply for a financial year if any two of the three criteria are met.
For Companies and LLPs |
Micro |
Small | Medium |
Large |
||||
Two of three: | New | Old | New | Old | New | Old | New | Old |
Annual turnover | ≤£1M | ≤£632k | ≤£15M | ≤£1.2M | ≤£54M | ≤£36M | >£54M | >£36M |
Gross assets | ≤£500K | ≤£316k | ≤£7.5M | ≤£5.1M | ≤£27M | ≤£18M | >£27M | >£18M |
Average number of Employees | ≤10 | ≤10 | ≤50 | ≤50 | ≤250 | ≤250 | >250 | >250 |
For groups ignoring elimination of intra group transactions |
Small |
Medium |
Large |
|||||
Two of three: | New | Old | New | Old | New | Old | ||
Annual turnover | ≤£18M | ≤£12.2M | ≤£64M | ≤£43.2M | >£64M | >£43.2M | ||
Gross assets | ≤£9M | ≤£6.1M | ≤£32M | ≤£21.6M | >£32M | >£21.6M | ||
Av number of Employees | ≤50 | ≤50 | ≤250 | ≤250 | >250 | >250 |
If a company or LLP meets any two out of the three criteria in a financial year they can apply the resultant reduction in reporting requirements.
Remember that there are certain types of companies not allowed to take advantage of this regime as set out in s.384 (companies excluded from the small companies regime), s.384B and s.467 (companies excluded from being treated as medium-sized) of the Companies Act 2006.
Companies and LLPs moving into the small entities regime will have simpler accounting requirements, will no longer need to produce a Strategic report and will be exempt from audit (subject to their governing document and any group membership implications). This audit exemption will be of huge benefit to small non-charitable companies and small LLPs.
Those moving from large to medium sized will have a simpler Strategic report removing the requirement to include a statement on how directors have had regard to stakeholder and other interests listed in section 172, CA 2006 (Section 172(1) statement).
A transitional provision in the legislation means that if the size criteria apply in the current financial year then they are also deemed to have applied in the previous financial year.
THE AUTHOR
Partner
More & Other Musings
View all related contentNEW Articles24 Sep 2025
Although we have had some recent economic uncertainties, the UK remains a very attractive location to site an international holding company.
NEW Articles23 Sep 2025
We were recently made aware that in an effort to clear enquiries on an R&D claim under investigation, HMRC called a client directly to ask them some ‘quick questions’.
Articles14 Aug 2025
What is a loan for an unallowable purpose? It is essentially what it says it is. It is when a business borrows money and uses it for something that tax rules say isn’t allowed for tax relief.
Articles9 Apr 2025
It is now more expensive to be late when it comes to making a VAT payment. The slowest payers now face a 250% increase to an annualised rate. In addition, the rate of late payment interest has also increased.
Articles28 Mar 2025
Changes will affect companies and some have already come into force.