CT600 box 75: company qualifies for SME exemption

Last updated: 30 September 2026

Short version. CT600 box 75 confirms that the company qualifies for the small and medium-sized enterprise exemption from transfer pricing. Tick it if the company qualifies for the period covered by that return. The exemption applies by law when its conditions are met, rather than being created by the tick.

1. What box 75 means

Transfer pricing rules can substitute an arm’s length price for a transaction between connected businesses. Most small and medium-sized enterprises have an automatic exemption, subject to exceptions. HMRC asks the filer to confirm eligibility in box 75. It is separate from eligibility for micro-entity accounts and from the small profits Corporation Tax rate.

2. Who counts as an SME?

A small enterprise has fewer than 50 staff and annual turnover or balance sheet total of no more than EUR 10 million.
A medium-sized enterprise has fewer than 250 staff and annual turnover of no more than EUR 50 million or balance sheet total of no more than EUR 43 million.

The staff condition must be met as well as at least one financial limit. Include the relevant figures of linked and partner enterprises. Use annualised figures for the particular chargeable period. A company’s own figures alone may give the wrong answer. See HMRC’s full definition and TIOPA s172 for the detailed calculation.

3. When does the exemption not apply?

An irrevocable election can disapply the exemption for a particular period. It can also be disapplied to provisions involving an affected person or transaction party resident in a non-qualifying territory. A qualifying territory requires the relevant treaty non-discrimination provision or a designation under s173, rather than simply being any country with a tax treaty.

HMRC can issue a transfer pricing notice to a medium-sized enterprise for specified provisions in a period. Small enterprises can receive a notice concerning provisions relevant to Patent Box profits. The notices concern the provisions they cover. Read the notice and the statutory exceptions when deciding what declaration to make.

4. What if box 75 is blank, or box 70 is ticked?

A blank box 75 does not itself switch off a statutory exemption or change a tax figure. HMRC’s guide asks eligible businesses to put an X in the box. In the filing wizard the declaration is optional.

Box 70 records a compensating adjustment claim following a UK-to-UK transfer pricing adjustment by a connected business. HMRC’s filing rules do not allow boxes 70 and 75 to both be yes. SimpleCompanyTax supports box 75 and does not complete box 70 or calculate transfer pricing adjustments.

5. How do I record my answer?

Use the guide to ticking box 75. One CT600 has one optional checkbox. Long Corporation Tax coverage has a separate dated checkbox for each of its two returns. Answer independently for each period, then check box 75 in each CT600 form PDF. The declaration does not change the wizard’s calculation, computations or statutory accounts.

For the wider rules, read whether transfer pricing rules apply to small companies.