Section 42C

For the purposes of the turnover test in paragraph 6(3) of Schedule 2 to the PA 2023, an affiliated person’s— affiliated turnover amount is to be calculated using their entire affiliated turnover amount generated over the relevant period, and total turnover amount is to be calculated using their entire total turnover amount generated over the relevant period. Where an affiliated person’s affiliated turnover amount or total turnover amount is not available for the entirety of the relevant period because the affiliated person was created or commenced their activities following the beginning of the relevant period, the affiliated turnover amount and total turnover amount is to be calculated in accordance with paragraph (3). An affiliated person’s affiliated turnover amount and total turnover amount is to be calculated— where there has been no turnover at all during the relevant period, using credible business projections for a period of three years beginning with the date of contract award; in any other case, using— which, when combined, provide turnover information and projections for the entirety of the period of three years beginning with the date any turnover was first generated during the relevant period. any affiliated turnover or total turnover, as the case may be, generated during the relevant period, and credible business projections, for a period beginning with the date of contract award, In calculating the affiliated turnover amount and total turnover amount in relation to a person (“A”), equivalent turnover of a person who is an affiliated person in relation to A, but is not the utility, is to be treated as part of A’s turnover. In this regulation— “accounting period” means a period in respect of which accounts are prepared in relation to the affiliated person; “date of contract award” means the date when the contracting authority decided to award the contract; “equivalent turnover” means— where the turnover test is being applied in respect of goods— where, for the purposes of paragraph (i), those goods are the same or similar to the goods A supplies to the utility or other persons affiliated with the utility and are supplied over the relevant period or, where A’s turnover has been calculated in accordance with paragraph (3), a corresponding three-year period; in respect of the affiliated turnover amount, turnover deriving from the supply of goods to the utility or other persons affiliated with the utility; in respect of the total turnover amount, the total turnover deriving from the supply of goods, where the turnover test is being applied in respect of services— where, for the purposes of paragraph (i), those services are the same or similar to the services A supplies to the utility or other persons affiliated with the utility and are supplied over the relevant period or, where A’s turnover has been calculated in accordance with paragraph (3), a corresponding three-year period; in respect of the affiliated turnover amount, turnover deriving from the supply of services to the utility or other persons affiliated with the utility; in respect of the total turnover amount, the total turnover deriving from the supply of services, where the turnover test is being applied in respect of works— where, for the purposes of paragraph (i), those works are the same or similar to the works A supplies to the utility or other persons affiliated with the utility and are supplied over the relevant period or, where A’s turnover has been calculated in accordance with paragraph (3), a corresponding three-year period; in respect of the affiliated turnover amount, turnover deriving from the supply of works to the utility or other persons affiliated with the utility; in respect of the total turnover amount, the total turnover deriving from the supply of works, “relevant period” means— the period of three years ending with the date of contract award, or where, due to the timing of the preparation of the affiliated person’s accounts, information relating to turnover for the period in sub-paragraph (a) is not available as at the date of contract award, a period of three years ending with the date the last accounting period before the date of contract award for which such information is available ends.

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Source: legislation.gov.uk · retrieved 2026-09-04