An asset is bought by one company but used by 2 businesses. The company that owns the asset invoices the second business for the use. Will the company owning the asset be able to claim the full AIA?
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Thank you, I think I was getting confused as to whether the recharge (i.e. the invoices to the second business) constitute special leasing, I guess it does as it is "hiring out the plant or machinery other than in the course any another qualifying activity".
Actually
A car hire company cannot claim AIA, but thats a function of AIA not being available on cars.
My understanding is the dividing line is between assets bought for an active hire business (AIA available) versus a passive leasing business (AIA not available)
Assuming the two businesses are connected I would err towards saying the full AIA will be OK on a look through basis. I'm not sure of the statutory position, but I can't see HMRC arguing it.