Part 2

Plant and machinery allowances
Chapter 12

Ships

Qualifying ships

Further registration requirement
154
1
If—
a
a person (“A”) has incurred expenditure on the provision of a ship, and
b
there is a time in the qualifying period, but more than 3 months after the beginning of that period, when the ship is not registered in a relevant register,
the ship is not a qualifying ship after that time.
2
The qualifying period is—
a
the period of 3 years beginning with the time when the ship is first brought into use for the purposes of a qualifying activity carried on—
i
by A, or
ii
if earlier, by a person connected with A, or
b
if shorter, the period beginning with that time and ending when neither A nor a person connected with A owns the ship.
3
In determining the qualifying period for the old ship, a qualifying activity carried on at any time by a person (“B”) is taken to be carried on at that time by a person connected with A if—
a
it is subsequently carried on by A or a person connected with A, and
b
the only changes in the persons carrying it on between the time that B does so and the time that A or a person connected with A does so are changes—
i
which do not involve all of the persons carrying it on before the changes permanently ceasing to carry it on, or
ii
in respect of which the qualifying activity is treated as continuing under
section 948 of CTA 2010
.
4
In this section “relevant register” means a register of shipping established and maintained—
a
under the laws of any part of the British Islands, or
b
under the laws of any country or territory which, at a time in the qualifying period for the ship, is an EEA State or a colony.
5
“EEA State” means a State which is a contracting party to the Agreement on the European Economic Area signed at Oporto on 2nd May 1992 as adjusted by the Protocol signed at Brussels on 17th March 1993 (except that for the period before the Agreement came into force in relation to Liechtenstein it does not include the State of Liechtenstein).
Pt. 2 modified (24.2.2003) by Proceeds of Crime Act 2002 (c. 29), s. 458(1), Sch. 10 para. 12 (with Sch. 10 para. 17(1)); S.I. 2003/120, art. 2, Sch. (with arts. 3 4) (as amended (20.2.2003) by S.I. 2003/333, art. 14)
S. 45H(2) modified (with effect in accordance with s. 167 of the amending Act) by Finance Act 2003 (c. 14) , Sch. 30 para. 7
Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 4 para. 4 ; S.I. 2004/2575 , art. 2(1) , Sch. 1
Pt. 2 modified (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 9(2), 21(2) (with s. 38(2)); S.I. 2004/2575, art. 2(1) , Sch. 1
Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 10, 22 (with s. 38(2) ); S.I. 2004/2575 , art. 2(1) , Sch. 1
S. 154(3)(b) substituted (6.4.2005) by
Income Tax (Trading and Other Income) Act 2005 (c. 5)
,
s. 883(1)
,
Sch. 1 para. 542
(with
Sch. 2
)
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 19
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 35
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 paras. 36, 37
Pt. 2 modified (21.7.2009) by Finance Act 2009 (c. 10), s. 24
Words in s. 154(3)(b)(ii) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 339 (with Sch. 2)
Pt. 2 modified (17.7.2013) by Finance Act 2013 (c. 29), s. 73(7)-(11) (with s. 73(6))
Pt. 2 modified (10.6.2021) by Finance Act 2021 (c. 26), s. 9(1)(a)