TTM09000 - Capital Allowances
Introduction
This section details the capital allowance regime for tonnage tax companies. It explains the different treatment for assets acquired either before entry into tonnage tax or acquired during tonnage tax and how the disposal of these assets is treated. It also explains what happens when a company leaves tonnage tax.
Table of contents
Outline
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Outline |
Entry into Tonnage Tax (P&M)
|
Tonnage tax pool (frozen pool) |
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Unrelieved qualifying expenditure |
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Apportioning a mixed pool |
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Mixed use asset acquired before entry |
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Ships bought and sold within 12 months |
During Tonnage Tax (P&M)
|
Mixed use asset acquired after entry |
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|
Change of use of tonnage tax asset; General |
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Change of use of tonnage tax asset acquired before entry |
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Change of use of tonnage tax asset acquired after entry |
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Change of use of non-tonnage tax asset |
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|
Disposals of plant and machinery |
Balancing charges (P&M)
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Deferment of balancing charges arising before entry |
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Reduction of balancing charges arising during Tonnage Tax |
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Giving effect to balancing charges arising during Tonnage Tax |
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Deferment of balancing charges arising after entry |
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Examples of deferred balancing charges |
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Procedure on deferred balancing charge |
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Surrender of unrelieved qualifying expenditure |
Exit from Tonnage Tax (P&M)
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Qualifying expenditure: General |
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Expiry of election or withdrawal notice |
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Assets other than expensive cars and long-life assets |
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Expensive cars |
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Long-life assets |
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Capital allowances after exiting from Tonnage Tax |
Industrial buildings
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Buildings used in tonnage tax trade |
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Balancing charges |
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Industrial building disposed of by tonnage tax company |
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Company with industrial building leaves Tonnage Tax |
