(1)This section applies if—
(a)a person has incurred qualifying expenditure on the provision of a ship for the purposes of a qualifying activity, and
(b)the ship ceases to be owned by the person without having been brought into use for the purposes of the qualifying activity.
(2)Any writing-down allowances that have previously been made in respect of qualifying expenditure in the single ship pool (or which have been postponed) must be withdrawn.
(3)The amount of any writing-down allowances withdrawn under subsection (2) is allocated, for the chargeable period in which the person ceases to own the ship, to the appropriate non-ship pool.
(4)Any adjustments required by this section are in addition to any adjustments required under section 132 (disposal events and single ship pool).