Commentary

B3.329A Restrictions on the annual investment allowance

Business tax
Business tax | Commentary

B3.329A Restrictions on the annual investment allowance

Business tax | Commentary

B3.329A Restrictions on the annual investment allowance

Restrictions apply to the annual investment allowance (AIA) as follows:

  1.  

    (a)     Companies — a company is entitled to a single AIA in respect of all qualifying activities carried on in a chargeable period, and can allocate it as it wishes1. This is subject to the restrictions in (b) to (d) below.

  2.  

    (b)     Groups of companies — a company, which in a financial year is a parent undertaking of one or more companies, and those other companies are entitled to a single AIA between them for the chargeable periods ending in that financial year, which can be allocated as they so wish2. This is subject to the restriction in (c) below.

  3.  

    (c)     Groups of companies under common control3 — where two or more groups of companies4 are, in a financial year, either controlled by the same person or related to one another, then companies which are members of those groups are entitled to a single AIA between them for the chargeable periods ending in that financial year, and it can be allocated as they so wish5.

  4.  

    (d)     Other companies under common control — two or more companies which in a financial year are either controlled by the same person or related to one another (but to which (b) or (c) above do not apply) are entitled to a single AIA between them for the chargeable periods ending in that financial year, and it can be allocated as they so wish6.

  5.  

    (e)     Qualifying activities under

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