Section 51D — Finance Act 2008: Third restriction: groups of companies under common control

Third restriction: groups of companies under common control 51D 1 Where in a financial year two or more groups of companies are—

a controlled by the same person (see section 51F),

and b related to one another (see section 51G), this section applies in relation to the companies which are members of those groups.

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 In this section and in sections 51F and 51G, a group of companies means—

a a company which, in the financial year mentioned in subsection (1), is a parent undertaking of one or more other companies, and b those other companies, (and the members of the group are the company which is the parent undertaking and those other companies).

6 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.

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