Capital Allowances Act 2001 section 51G

Companies and groups: meaning of "related"

Section 51G defines when companies and groups of companies are treated as "related" to each other for the purposes of the annual investment allowance provisions, based on shared premises or similar activities.

• Two companies are related in a financial year if they share the same business premises or carry on similar qualifying activities, or both
• Two groups are related if any member of one group is related to any member of the other group, and this relationship extends further to any other group related to either of them
• The similar activities test is met where more than 50% of each company's turnover for the relevant chargeable period comes from qualifying activities within the same NACE classification
• The relevant chargeable period for a company is the chargeable period that ends in the financial year in question