Section 51D | Third restriction: groups of companies under common control ^F1

(1)Where in a financial year two or more groups of companies are—^F1

(a)controlled by the same person (see section 51F), and^F1

(b)related to one another (see section 51G),^F1

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.^F1

(3)The companies may allocate the annual investment allowance to the relevant AIA qualifying expenditure as they think fit.^F1

(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).^F1

(5)In this section and in sections 51F and 51G, a group of companies means—^F1

(a)a company which, in the financial year mentioned in subsection (1), is a parent undertaking of one or more other companies, and^F1

(b)those other companies,^F1

(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.^F1

(7)In this section “parent undertaking” has the same meaning as in section 1162 of the Companies Act 2006.^F1