1.6 Further Provisions Relating to Companies re: AIA

Question 1

How are group companies (and the other) treated for the purposes of AIA?

Answer 1

51% groups of companies and companies under “common control” are treated as one business for AIA purposes and so they only receive one AIA between them.

Question 2

What does ‘common control’ mean? x2

Answer 2

a. the companies are controlled by the same person; and
b. the companies are ‘related’ to one another.

Question 3

When are companies ‘related’ to one another?

Answer 3

Companies are related to one another if either:

a. their businesses are carried on from the same premises; or

b. more than 50% of the turnover of each of the companies is derived from the same economic activities.

Question 4

What are the 3 comps for calculating the TTP?

Answer 4

1. Capital Allowances calc
2. Tax Adjusted Trading Profits calc
3. Corporation Tax comp