Part 2

Plant and machinery allowances
Chapter 12

Ships

Deferment of balancing charges

Limit on amount deferred
138
1
The amount deferred must not exceed the smallest of the following amounts—
a
the amount of any balancing charge which, if the claim for deferment had not been made, would have been made for the chargeable period for which deferment is claimed in the appropriate non-ship pool;
b
the amount given by section 139 (amount taken into account in respect of the old ship);
c
the amount which is, or is expected to be, the amount of expenditure on new shipping incurred—
i
by the shipowner or, if the shipowner is a company, by another company which is a member of the same group at the time when the expenditure is incurred, and
ii
within the period of 6 years beginning with the relevant disposal event;
d
the amount of the shipowner’s profits or income from the qualifying activity for the chargeable period for which deferment is claimed.
2
In determining profits or income for the purposes of subsection (1)(d)—
a
any other amounts deferred under section 135 are to be taken into account, and
b
any amounts brought forward under section 385 or 393 of ICTA (losses) are to be disregarded.