(1) Regulation 5 (LLPs subject to the small LLPs regime) is amended as follows.

(2) In section 382 (LLPs qualifying as small: general) -

(a) after subsection (1) insert -

"(1A) Subject to subsection (2), an LLP qualifies as small in relation to a subsequent financial year if the qualifying conditions are met in that year.";

(b) for subsection (2) substitute -

"(2) In relation to a subsequent financial year, where on its balance sheet date an LLP meets or ceases to meet the qualifying conditions, that affects its qualification as a small LLP only if it occurs in two consecutive financial years."; and

(c) in the table in subsection (3) -

(i) in item 1 (turnover), for "Not more than £6.5 million" substitute "Not more than £10.2 million"; and

(ii) in item 2 (balance sheet total), for "Not more than £3.26 million" substitute "Not more than £5.1 million".

(3) In section 383 (LLPs qualifying as small: parent LLPs) -

(a) after subsection (2) insert -