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HMRC internal manual

Capital Allowances Manual

PMA: Ships: Ship not used


A ship may cease to belong to a person without it ever having been brought into use. The expenditure will have been put into a single ship pool in the normal way and it will have qualified for capital allowances from the time when it was acquired.

When a ship ceases to belong to a person without it ever being brought into use:

  • the single ship qualifying activity is treated as discontinued and a disposal value is brought to account in the normal way CA23240;
  • any writing-down allowances which have been made to the person or postponed are withdrawn; and
  • an amount equal to the allowances withdrawn is added to the appropriate pool for the chargeable period in which the ship ceases to belong to the shipowner.


The appropriate pool is the pool that the expenditure would have been added to if the asset had been something other than a ship.