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HMRC internal manual

Tonnage Tax Manual

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Schedule 22 Finance Act 2000: Part IX the ring fence - capital allowances - Para 70 entry - plant and machinery - assets to be used partly for Tonnage Tax trade

FA00/SCH22/PARA70

(1) This paragraph applies where, on a company’s entry into tonnage tax, plant and machinery is to be used partly for the purposes of the company’s tonnage tax trade and partly for the purposes of a qualifying activity carried on by the company.

(2) Sections 61(1)(e), 206(3) and 207 of the Capital Allowances Act 2001 (effect of use partly for qualifying activity and partly for other purposes) apply as follows-

(a) references to a qualifying activity shall be read as not including references to the tonnage tax trade, and

(b) references to purposes other than those of a qualifying activity shall be read as including references to the purposes of the tonnage tax trade.

History

Amended by Schedule 2 CAA 2001. Up to 31st March 2001 subparagraph 2 read:

(2) The provisions of sections 24(6)(c)(iv) and 79(3) to (6) of the Capital Allowances Act 1990 (effect of use partly for trade and partly for other purposes) apply as follows-

(a) references to a trade shall be read as references to the qualifying activity (and not as including a reference to the tonnage tax trade), and

(b) references to purposes other than those of a trade shall be read as including references to the purposes of the tonnage tax trade.

References

Mixed use asset acquired before entry TTM09040