SCHEDULES

SCHEDULE 22 Tonnage tax

Part IX The ring fence: capital allowances: general

Entry: plant and machinery: assets to be used partly for tonnage tax trade

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1

This paragraph applies where, on a company’s entry into tonnage tax, plant and machinery is to be used partly for the purposes of the company’s tonnage tax trade and partly for the purposes of a qualifying activity carried on by the company.

F12

Sections 61(1)(e), 206(3) and 207 of the Capital Allowances Act 2001 (effect of use partly for qualifying activity and partly for other purposes) apply as follows—

a

references to a qualifying activity shall be read as not including references to the tonnage tax trade, and

b

references to purposes other than those of a qualifying activity shall be read as including references to the purposes of the tonnage tax trade.