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Responsible officers must include intra-group turnover in the aggregate turnover calculation.

Example

Company A is a member of a group. It makes widgets that it sells to third parties. It also sells widgets to company B, another company in the same group. Both companies have the same financial year.

»Ê¹ÚÌåÓýapp responsible officers of company A must include the sales to company B within the turnover of company A when they calculate whether company A, either on its own or in aggregate with other UK incorporated companies within the same group, meets the turnover condition.

If company B sells on the widgets it bought from company A to third parties in the financial year, this sale will be reflected in its turnover figure. In this situation, both companies� sales of the widgets must be reflected in the aggregated turnover figures.

Company B may ‘consume� the widgets in its own trade in which case there is no onward sale and nothing included in turnover. This simply reflects fact and no ‘deemed� sales by company B should be calculated and included in the aggregation.

It is not expected that the turnover test will hinge on intra-group transactions very often.