John Selwood’s Question Corner | ICAEW

John Selwood helps to unpick the problematic issue of eligibility for audit exemption.

I prepare the accounts for a UK subsidiary of an Italian parent company. The UK company takes advantage of s479A subsidiary audit exemption. Is this exemption still available post-Brexit?

No. The use of this exemption is now restricted from periods commencing 1 January 2021. The exemption can only now be used where there is a UK parent that issues the guarantee of the relevant subsidiary’s debt.