TTM10420 - Ship leasing: Quantitative restrictions on allowances
Shared expenditure
If two or more persons share the cost of providing a ship that is subject to the restrictions on capital allowances described in TTM10400 the restrictions are applied proportionately to each of those persons’ shares in the total cost.
Example
A Ltd and B Ltd are two lessors who take an equal share in providing a qualifying ship costing £220 million to a tonnage tax company under a lease
A Ltd and B Ltd will be entitled to:
- writing down allowances of 18% a year on the first £50 million of their expenditure, and
- writing down allowances of 6% a year on the next £50 million of their expenditure, but
- no allowances in respect of the remaining £10 million of their expenditure,
where the limits are £100 million for a company not sharing expenditure.
References
| FA00/SCH22/PARA95 (3) (shared expenditure) | TTM17551 |
| Quantitative restrictions on allowances | TTM10400 |