Forthcoming changes to UK Legislation will mean that UK entities with investment holding activities may benefit considerably as they may no longer require an audit.
In a press release issued on 6th September 2012 it was annouced that new regulations, which come into force for accounting years ending on or after 1st October 2012, show Limited Companies and Limited Liability Partnerships will be eligible for an audit exemption if they meet two out of three criteria:
- No more than 50 employees;
- No more than £3.26 million in balance sheet;
- Less than £6.5 million in turnover
Of potentially even greater significance is that subsidiary companies included in their parent’s consolidated accounts will be eligible for an audit exemption, if accompanied by a statutory guarantee from their parent company covering all of their outstanding liabilities.