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HMRC internal manual

Capital Allowances Manual

PMA: Ships: Disposal events


The normal disposal event rules CA23240 apply to the single ship pool. There is an extra disposal event for a single ship pool. A person is required to bring a disposal value to account if the ship is provided for leasing and it begins to be used other than for a qualifying purpose CA24110, CA24120 at some time during the designated period CA24050.

If there is a disposal event in relation to the single ship pool the single ship pool ends. The expenditure in the single ship pool is transferred to the appropriate pool and the disposal value is brought to account in that pool. This ensures that single ship pools do not automatically generate balancing adjustments on the disposal of a ship.

Example The Pilgrims partnership has a balance of £750,000 in the single ship pool for the Mayflower on 1 January 2004. If they sell the Mayflower for £850,000 on 15 March 2004 the balance of £750,000 in the single ship pool is transferred to the main pool and the disposal proceeds of £850,000 are deducted from that pool.