"Grace" period for CT QIPs - available once only?

If we fall out of large company QIPs, then later re-enter them, do we get another "grace" year?

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Many years ago our company landed in the QIPs regime (one year after we had used the "grace" year exemption). After two year's exceptional trading, the company no longer qualified as "large" for CT purposes and so we fell out of the QIPs regime again.

Fast forward to now. AIUI our "common control" companies now count as "associated" for these purposes. It means that projected profits will certainly exceed the newly-reduced "large company" threshold in our 2023/24 accounting year.

Could we use the "grace" year exemption to delay QIPs a second time (for 12 months at least)?  Or would HMRC argue that we burned up our "grace period" all those years ago?

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By Ruddles
20th Feb 2024 18:36

Year of grace is not a once-in-a-lifetime thing. As soon as you fall outside QIPs the usual commencement rules apply (again).

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