TTM09020 - Capital Allowances: Entry into Tonnage Tax (P&M)

Unrelieved qualifying expenditure

For the purpose of calculating the amount to be taken to the tonnage tax (frozen) pool (see TTM09010), ‘unrelieved qualifying expenditure’ means:

• the balance that would otherwise have been carried forward under Part II of the Capital Allowances Act 1990 - i.e. the written down value immediately before the company’s entry into Tonnage Tax, after effect has been given to capital allowances claims for the final pre-Tonnage Tax period

plus

• any balance of qualifying expenditure which remains unrelieved by virtue of notice having been given under CAA01/S130 (previously CAA90/S30(1) or CAA90/S31(3)) - i.e. any outstanding ‘free depreciation’, (see CA25200 onwards).

References