TTM17121 - Schedule 22 Finance Act 2000: Part III qualifying companies and groups - Para 22 effect of change of use

FA00/SCH22/PARA22

(1) A qualifying ship that begins to be used for non-qualifying purposes ceases to be a qualifying ship when it begins to be so used, subject to the following provisions.

(2) If—

(a) a company operates a ship throughout an accounting period of the company, and

(b) in that period the ship is used for non-qualifying purposes on not more than 30 days,

that use shall be disregarded in determining whether the ship is a qualifying ship at any time during that period.

(3) In the case of an accounting period shorter than a year, the figure of 30 days in sub-paragraph (2) shall be proportionately reduced.

(4) If a company operates a ship during part only of an accounting period of the company, sub-paragraph (2) has effect as if for “30 days”, or the number of days substituted by sub-paragraph (3), there were substituted the number of days that bear to the length of that part of the accounting period the same proportion that 30 days does to a year.

(5) In this paragraph references to use for non- qualifying purposes are to—

(a) use for an activity other than any of the activities mentioned in paragraph 19(1)(a) to (d), or

(b) use as a vessel of a kind excluded by paragraph 20 from being a qualifying ship.

[(6) This paragraph does not apply for the purposes of sub-paragraphs (2) to (5) of paragraph 20A (qualifying dredgers and tugs).

References

TTM20007 FA 2005 Sch 7 Para 7, with effect from 7 April 2005 (TTM20018)

Effect of change of use	TTM03700
Temporary change of use	TTM03710