TTM17381 - Schedule 22 Finance Act 2000: Part IX the ring fence - capital allowances - Para 68 introduction
(1) This Part of this Schedule makes provision about capital allowances where a company enters, leaves or is subject to tonnage tax.
(2) The general scheme of this Part of this Schedule is that-
(a) entry of a company into tonnage tax does not of itself give rise to any balancing charges or balancing allowances,
(b) a company subject to tonnage tax is not entitled to capital allowances in respect of expenditure incurred for the purposes of its tonnage tax trade, whether before or after its entry into tonnage tax, and
(c) * on leaving tonnage tax-
(i) a company is treated as having incurred qualifying expenditure on its tonnage tax plant and machinery assets of an amount equal to the lower of cost and market value, where it leaves tonnage tax on expiry of an election or on the taking effect of a withdrawal notice, but
(ii) otherwise, a company is put broadly in the position it would have been in if it had never been subject to tonnage tax.
(3) A company's tonnage tax trade is not a qualifying activity for the purposes of determining the company's entitlement to capital allowances.
|Outline of capital allowances||TTM09001|
|* w e f 7 April 2005 - FA 2005 Sch 7 para 12||TTM20012|