Part 2 Plant and machinery allowances

Chapter 12 Ships

Pooling and postponement of allowances

133 Ship not used

(1)

This section applies if—

(a)

a person has incurred qualifying expenditure on the provision of a ship for the purposes of a qualifying activity, and

(b)

the ship ceases to be owned by the person without having been brought into use for the purposes of the qualifying activity.

(2)

Any writing-down allowances that have previously been made in respect of qualifying expenditure in the single ship pool (or which have been postponed) must be withdrawn.

(3)

The amount of any writing-down allowances withdrawn under subsection (2) is allocated, for the chargeable period in which the person ceases to own the ship, to the appropriate non-ship pool.

(4)

Any adjustments required by this section are in addition to any adjustments required under section 132 (disposal events and single ship pool).