Annual Investment Allowance – HMRC is checking on groups and related companies 

HMRC believe that they have identified certain companies that they believe are members of a group structure.

HMRC are writing to the related and/or group companies, where HMRC consider that the Annual Investment Allowance (AIA) may have been overclaimed in situations where it is shared amongst the group and/or related companies.

Should a company receive HMRC’s letter, it will set out the;

  • period of the claim
  • value of AIA claimed by the company
  • value of AIA claimed by the group/related companies

As always, HMRC will require a response within 30 days. In the event of no response, HMRC are likely to launch an enquiry into the AIAs for any of the related/group companies affected. It is likely that HMRC will opt for the company that may yield the biggest tax take. 

Should the company receiving the HMRC letter believe the HMRC information to be incorrect, they will need to contact HMRC, without delay.

Scott Whitmore is Dafferns’ Senior Corporate Tax manager and is happy to assist should you have any concerns with your tax affairs.