PART IIIIncome Tax, Corporation Tax and Capital Gains Tax

CHAPTER IICapital Allowances

71Restriction on first-year allowances in respect of ships and aircraft let on charter

(1)

In subsection (5) of section 64 of the M1Finance Act 1980 (first-year allowances to be available in respect of ships and aircraft let out on certain charters) after the words " subsection (2) above " there shall be inserted the words " but subject to subsection (6A) below ".

(2)

At the end of subsection (6) of that section there shall be inserted the following subsection: —

“(6A)

Subsection (5) above does not apply if the main object, or one of the main objects, of the letting of the ship or aircraft on charter, or of a series of transactions of which the letting on charter was one, or of any of the transactions in such a series was to obtain a first-year allowance in respect of expenditure incurred on the provision of the ship or aircraft, whether by the person referred to in subsection (5) (a) above or some other person.”

(3)

This section applies in relation to expenditure incurred on or after 10th March 1982 unless—

(a)

the expenditure consists of the payment of sums payable under a contract entered into before that date by the person incurring the expenditure ; and

(b)

the ship or aircraft concerned is brought into use not later than 31st March 1984.