NACE
2 January 2008 in Company, Investment The proposals for changes to the capital allowances regime include the new Annual Investment Allowance (AIA) of up to £50,000 for qualifying expenditure in a chargeable period.
To prevent related companies from each claiming the AIA, the AIA falls to be shared (as best suits) by companies which are related. Related companies are those under common control and which either share the same business premises or, where based at different locations, conduct the same type of business activity.
In determining whether related companies are conducting the same activity, it is necessary to establish the activity from which each company derives the majority of its turnover and to relate that activity to the common statistical classification of activities provided by the Nomenclature generale des activities Economiques dans les Communautes europeennes (NACE). Where the activities fall under the same of the 17 top level heads of classification, the companies are related for AIA purposes.
The NACE classifications can be found here.
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