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 in respect of which, under section 113(2) or 343(2) of ICTA, the qualifying activity is not treated as having been discontinued.
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).