Part 2

Plant and machinery allowances
Chapter 11

Overseas leasing

Recovery of excess allowances

Excess allowances: special provision for ships
113
1
If the plant or machinery referred to in section 111 is a ship—
a
no allowance is to be made in respect of the ship under section 131(3) (postponed allowances) for the first chargeable period of overseas use or any subsequent chargeable period,
b
nothing in section 132(2) (disposal events and single ship pool) restricts the operation of section 111, and
c
the amount of any first-year or writing-down allowance in respect of the ship which has been postponed under section 130 and not made is to be allocated to a long-life asset pool or an overseas leasing pool for the chargeable period following the first chargeable period of overseas use.
2
“The first chargeable period of overseas use” means the chargeable period in which the plant or machinery is first used for overseas leasing which is not protected leasing.