Ship leasing: Quantitative restrictions on allowances
If two or more persons share the cost of providing a ship that is subject to the restrictions on capital allowances described in TTM10400, then the restrictions are applied proportionately to each of those persons’ shares in the total cost.
A Ltd and B Ltd are two lessors who take an equal share in providing a qualifying ship costing £90 million to a tonnage tax company under a lease
A Ltd and B Ltd will each be entitled to:
* * writing down allowances of 25 per cent a year on the first £20 million of their expenditure, and * writing down allowances of 10 per cent a year on the next £20 million of their expenditure, but * no allowances in respect of the remaining £5 million of their expenditure.
|FA00/SCH22/PARA95 (3) (shared expenditure)||TTM17551|
|Quantitative restrictions on allowances||TTM10400|