Jurisdiction(s):
United Kingdom
Related legal acts
Key definition
Working Capital definition

What does Working Capital mean? In legal practice, working capital describes the liquid resources a business needs to fund its general operating requirements, usually calculated as current assets minus current liabilities (net working capital). It is not defined by statute or case law in England & Wales, Scotland, Northern Ireland or Ireland; it is an accounting and commercial concept, typically defined in contracts. Typical components include trade receivables and inventories less trade payables and accruals. Share purchase agreements, loan agreements and facility agreements frequently tailor the definition by including or excluding items such as cash, debt, tax, intercompany balances and exceptional or non‑recurring items. - M&A: purchase...

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Reporting accountants’ letter confirming working capital statement for UK Main Market prospectus

Precedents
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Print on the Reporting accountants’ letterhead.

STOP PRESS : Significant reforms to the UK prospectus regime came into force on 19 January 2026.

The principal sources for the UK regime governing public offers of securities and admissions to trading are the Public Offers and Admissions to Trading Regulations 2024, SI 2024/105 (the POATRs), together with the FCA sourcebook, The Prospectus Rules: Admission to Trading on a Regulated Market (PRM)...

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Web page updated on 22/05/2026

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