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HMRC internal manual

Tonnage Tax Manual

Schedule 22 Finance Act 2000: Part X the ring fence - capital allowances - ship leasing - Para 89 Introduction


(1) In the case of a lease of a qualifying ship provided, directly or indirectly, to a company within tonnage tax, the provisions of Part 2 of the Capital Allowances Act 2001 have effect subject to and in accordance with the provisions of-

paragraphs 90 and 91 (defeased leasing),

paragraphs 91A to 91F (long funding leases)

paragraph 92 (sale and lease back arrangements), and

paragraphs 94 to 102 (quantitative restrictions on allowances).

This is subject to paragraph 89A (exception for ordinary charters).

(2) In this Part of this Schedule “lease” means any arrangement that provide for a ship to be leased or otherwise made available by a person (“the lessor”) to another person(“the lessee”).

(3) Other expressions used in this Part of this Schedule have the same meaning as in Part IX of this Schedule (the ring fence: capital allowances: general).


Outline of ship leasing TTM10001
What is a ‘finance lease’? TTM10010
Which leases are affected? TTM10020