Part 2Plant and machinery allowances

Chapter 12Ships

Deferment of balancing charges: supplementary provisions

156Connected persons

1

For the purposes of the deferment rules a person (“B”) is connected with another person (“A”) at any time if, at that time—

a

B is connected (in the sense given in section 839 of ICTA) with A,

b

B is carrying on a qualifying activity previously carried on by A and the condition in subsection (2) is met, or

c

B is connected (in the sense given in section 839 of ICTA) with a person who is carrying on a qualifying activity previously carried on by A and the condition in subsection (2) is met.

2

The condition is that the only changes in the persons carrying on the qualifying activity since A carried it on 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.

3

If expenditure is incurred by a person who is not the shipowner, the persons connected with him at any time include any person connected with the shipowner at that time as a result of subsection (1).