Part 2

Plant and machinery allowances
Chapter 12

Ships

Attribution of deferred amounts

Notice attributing deferred amounts to new expenditure
140
1
The shipowner may, by notice to the Inland Revenue, attribute all or part of an amount deferred under section 135 to expenditure on new shipping.
2
An amount attributed under this section is attributed to an equal amount of the expenditure on new shipping.
3
Subsection (1) is subject to subsections (4) and (5) and section 141 (deferred amounts attributed to earlier expenditure first).
4
Subsection (1) applies only if the expenditure on new shipping is incurred—
a
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
b
within the period of 6 years beginning with the relevant disposal event.
5
An amount may be attributed to expenditure on new shipping only to the extent that amounts have not already been attributed to it under this section.
6
A notice given in respect of expenditure incurred by another company does not have effect unless the other company joins the shipowner in giving it.