Section 51C — Finance Act 2008: Second restriction: groups of companies

Second restriction: groups of companies 51C 1 This section applies in relation to—

a a company which, in a financial year, is a parent undertaking of one or more other companies, and b those other companies.

2 The companies are entitled to a single annual investment allowance between them in respect of the relevant AIA qualifying expenditure.

3 The companies may allocate the annual investment allowance to the relevant AIA qualifying expenditure as they think fit.

4 The relevant AIA qualifying expenditure is the AIA qualifying expenditure incurred by the companies in chargeable periods ending in the financial year mentioned in subsection (1).

5 A company (“P”) is a parent undertaking of another company (“C”) in a financial year if P is a parent undertaking of C at the end of C's chargeable period ending in that financial year.

6 In this section “ parent undertaking ” has the same meaning as in section 1162 of the Companies Act 2006.

7 This section is subject to section 51D.