Ship leasing: Quantitative restrictions on allowances
Restrictions cease to apply: Introduction
The restrictions on capital allowances available to lessors of ships only apply where the ship is a qualifying ship provided for use by a tonnage tax company.
If this ceases to be the case, perhaps because the lessee’s tonnage tax election expires, or because the ship is converted to non-qualifying use, then the restrictions cease to apply.
Expenditure on the ship in question should be moved from the lessor’s 18 per cent and 8 per cent tonnage tax pools and moved back into the normal capital allowances pool.
See TTM10510 for details of how the reallocation of expenditure is to be done
|FA00/SCH22/PARA99 (change of circumstances taking out case)||TTM17571|
|Restrictions cease to apply: Procedure||TTM10510|
|Restrictions cease to apply: Example||TTM10520|