Part 2 Plant and machinery allowances

Chapter 5 Allowances and charges

F1Annual investment allowance

51JQualifying activity: meaning of “related”

(1)

A qualifying activity (“A1”) is related to another qualifying activity (“A2”) in a tax year if one or both of—

(a)

the shared premises condition, and

(b)

the similar activities condition,

are met in relation to the activities in the tax year.

(2)

Where A1 is related to A2 in a tax year, A1 is also related to any other qualifying activity to which A2 is related in that tax year.

(3)

The shared premises condition is met in relation to two qualifying activities in a tax year if, at the end of the relevant chargeable period for one or both of the activities, the activities are carried on from the same premises.

(4)

The similar activities condition is met in relation to two qualifying activities in a tax year if, at the end of the relevant chargeable period for one or both of the activities, the activities are within the same NACE classification.

(5)

In this section—

NACE classification” has the same meaning as in section 51G, and

relevant chargeable period”, in relation to a qualifying activity and a tax year, means the chargeable period for that activity ending in that tax year.