Capital Allowances Act 2001 section 51J

Qualifying activity: meaning of "related"

Section 51J defines when two or more qualifying activities carried on by an individual are treated as "related" to each other in a tax year, which is relevant to determining annual investment allowance entitlements.

• Two qualifying activities are related if they meet the shared premises condition, the similar activities condition, or both
• The shared premises condition is met where two activities are carried on from the same premises at the end of the relevant chargeable period for one or both of them
• The similar activities condition is met where two activities fall within the same NACE industrial classification at the end of the relevant chargeable period for one or both of them
• If activity A1 is related to activity A2, then A1 is also automatically related to any other qualifying activity to which A2 is related in the same tax year, creating a chain of related activities