TTM17561 - Schedule 22 Finance Act 2000: Ship Leasing

Quantitative restrictions: Treatment of disposal proceeds

FA00/SCH22/PARA97

(1) The following provisions apply where-

(a) there is a disposal of a ship in relation to which paragraph 94 applies to restrict the capital allowances available, and

(b) a disposal value falls fall to be brought into account.

The reference in paragraph (a) to a disposal of ship includes a disposal of a part of a ship, or of an interest in a ship or a part of a ship.

(2) The disposal value is first allocated between the 25%; pool and the 10%; pool in the same proportions as the cost of providing the ship was allocated to those pools.

(3) If the amount allocated to the 25%; pool exceeds the amount of qualifying expenditure remaining in that pool, any excess shall be taken to the 10%; pool.

(4) A balancing charge arises only if the amount taken to the 10%; pool exceeds the amount of qualifying expenditure remaining in that pool.

References