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HMRC internal manual

Capital Allowances Manual

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HM Revenue & Customs
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Know-how: Offshore diving contractors agreement

You may get a claim from a diver for know-how allowances on the cost of courses taken. An agreement was made with the Association of Offshore Diving contractors in January 1983. Under that agreement the cost of the following courses qualifies for allowances as expenditure on know- how:

  • costs of training a diver to the Part I standard of schedule 4 of SI1981/399, that is a basic air diver;
  • the costs of training a diver to the Part II standard of schedule 4 of SI1981/399, that is a mixed gas or bell diver;
  • cost of training a diver by a module from the Part IV to the Part I standard, or from the Part III to the Part I standard, of schedule 4 of SI1981/399 Training costs specifically relating to Part II or Part IV standards only will not qualify.

 

The costs of training a diver through specialised courses using, for instance, NDT techniques for the CSWIP Phase 7 qualification, qualifies provided that the trainee diver is already qualified to the Part I or Part II standard of schedule 4 of SI1981/399 and so long as the diver is carrying on a trade and uses the know-how acquired in the oil/mineral context.

The agreement means that the cost of the technical courses listed above which a diver undertakes in connection with North Sea oil or gas exploration is treated as expenditure on know- how and so it may qualify for capital allowances.

Where the diver’s activities are treated as a trade by ICTA88/S314 the condition that the know- how is acquired for use in a trade will be satisfied and so capital allowances will be available CA71000.