SCHEDULES

SCHEDULE 32Tonnage tax: restrictions on capital allowances for lessors of ships

Consequential amendments

2

1

In paragraph 41(4) of that Schedule (the requirement not to enter into tax avoidance arrangements: exemption for finance leases)—

a

in the first sentence omit “finance”;

b

for the second sentence substitute— “ In this sub-paragraph “lease”, and “lessor” in relation to a lease, have the meaning given by paragraph 89(2). ”.

2

In paragraph 147 (index of defined expressions)—

a

omit the entry for “finance lease (and lessor and lessee) (in Part X)”;

b

insert at the appropriate place—

lease (and lessor and lessee) (in Part X)

paragraph 89(2)