(1)This section applies if the relevant disposal event is, or results from—
(a)the total loss of the old ship, or
(b)damage to the old ship that puts it in a condition in which it is impossible, or not commercially worthwhile, to undertake the repairs required for restoring it to its previous use.
(2)A registered ship may be a qualifying ship for the purposes of—
(a)section 136(b) (further conditions for deferment), or
(b)sections 146(3)(b) and 149(1)(a) (expenditure on new shipping),
even if it is not registered as a ship with a gross tonnage of 100 tons or more.
(3)In subsection (2) “registered ship” means a ship registered in a register of shipping established and maintained under the law of any country or territory.