Section 51G | Companies and groups: meaning of “related” ^F1

From legislation.gov.uk

(1)A company (“C1”) is related to another company (“C2”) in a financial year if one or both of—^F1

(a)the shared premises condition, and^F1

(b)the similar activities condition,^F1

are met in relation to the companies in that financial year.

(2)Where C1 is related to C2 in a financial year, C1 is also related to any other company to which C2 is related in that financial year.^F1

(3)A group of companies (“G1”) is related to another group of companies (“G2”) in a financial year if in that financial year a company which is a member of G1 is related to a company which is a member of G2.^F1

(4)Where G1 is related to G2 in a financial year, G1 is also related to any other group of companies to which G2 is related in that financial year.^F1

(5)The shared premises condition is met in relation to two companies in a financial year if, at the end of the relevant chargeable period of one or both of the companies, the companies carry on qualifying activities from the same premises.^F1

(6)The similar activities condition is met in relation to two companies in a financial year if—^F1

(a)more than 50% of the turnover of one company for the relevant chargeable period is derived from qualifying activities within a particular NACE classification, and^F1

(b)more than 50% of the turnover of the other company for the relevant chargeable period is derived from qualifying activities within that NACE classification.^F1

(7)In this section—^F1F2

“NACE classification” means the first level of the common statistical classification of economic activities in the European Union established by Regulation (EC) No 1893/2006 of the European Parliament and the Council of 20 December 2006 (as that Regulation has effect in EU law), and

“relevant chargeable period”, in relation to a company and a financial year, means the chargeable period of the company ending in that financial year.