Part 2

Plant and machinery allowances
Chapter 12

Ships

Pooling and postponement of allowances

Expenditure which is not to be allocated to single ship pool
128
1
The expenditure is not to be allocated to a single ship pool if the ship is provided for leasing unless—
a
the ship is not used for overseas leasing at any time in the designated period, or if it is, is used only for protected leasing, and
b
it appears that the ship will be used for a qualifying purpose in the designated period and will not be used for any other purpose at any time in that period.
2
The expenditure is not to be allocated to a single ship pool if the qualifying activity for the purposes of which the ship is provided is special leasing of plant or machinery.
3
In subsection (1) “leasing”, “overseas leasing”, “protected leasing”, “qualifying purpose” and “designated period” have the same meaning as in Chapter 11 (overseas leasing).