22(1)A qualifying ship that begins to be used [F1for non-qualifying purposes] ceases to be a qualifying ship when it begins to be so used, subject to the following provisions.U.K.
(2)If—
(a)a company operates a ship throughout an accounting period of the company, and
(b)in that period the ship is used [F2for non-qualifying purposes] on not more than 30 days,
that use shall be disregarded in determining whether the ship is a qualifying ship at any time during that period.
(3)In the case of an accounting period shorter than a year, the figure of 30 days in sub-paragraph (2) shall be proportionately reduced.
(4)If a company operates a ship during part only of an accounting period of the company, sub-paragraph (2) has effect as if for “30 days", or the number of days substituted by sub-paragraph (3), there were substituted the number of days that bear to the length of that part of the accounting period the same proportion that 30 days does to a year.
(5)In this paragraph references to use [F3for non-qualifying purposes are to—
(a)use for an activity other than any of the activities mentioned in paragraph 19(1)(a) to (d), or
(b)]use as a vessel of a kind excluded by paragraph 20 from being a qualifying ship.
[F4(6)This paragraph does not apply for the purposes of sub-paragraphs (2) to (5) of paragraph 20A (qualifying dredgers and tugs).]
Textual Amendments
F1Words in Sch. 22 para. 22(1) substituted (7.4.2005) by Finance Act 2005 (c. 7), Sch. 7 paras. 7(2), 18(2)
F2Words in Sch. 22 para. 22(2)(b) substituted (7.4.2005) by Finance Act 2005 (c. 7), Sch. 7 paras. 7(3), 18(2)
F3Words in Sch. 22 para. 22(5) substituted (7.4.2005) by Finance Act 2005 (c. 7), Sch. 7 paras. 7(4), 18(2)
F4Sch. 22 para. 22(6) inserted (7.4.2005) by Finance Act 2005 (c. 7), Sch. 7 paras. 7(5), 18(2)