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Annual Investment Allowance restriction

Annual Investment Allowance restriction

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I am aware that AIA is restricted to 1 allowance of £50k where 2 or more companies are related by group or other control (Sections 51B - 51G CAA 2001). Section 51H also restricts the availability where there are 2 or more related unincorporated businesses.

As far as I can see, there is no restriction where you have say, a partnership business and a Limited company, even though they may be conducting the same or similar businesses and from the same premises. In such circumstances, both entities would appear to be able to claim the full AIA of £50k each.

Can anyone confirm my understanding?

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By MBK
11th Sep 2009 17:18

That is my understanding

And has been since I went on a course on this a while back. I have just re-read S's 51A - 51J and, to my mind, there is clearly no restriction.

However, I guess you just need to be aware of the anti avoidance at S218A - but that would clearly not apply where the existence of the two entities predated the introduction of AIA.

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