TTM17556 - Schedule 22 Finance Act 2000: Part X the ring fence - capital allowances - ship leasing - Para 96 quantitative restrictions - meaning of ‘cost of providing ship’
FA00/SCH22/PARA96
(1) For the purposes of paragraph 94 (quantitative restrictions on allowances) the cost of providing the ship means the total cost of providing it in a state ready to be brought into use for the purposes for which it is normally to be used.
This includes the cost of any accessories or additional equipment, or fitting out, necessary for the operation of the ship for those purposes.
(2) The cost of providing the ship shall be determined without regard to the provisions of the Capital Allowances Act 2001 as to-
(a) when expenditure is treated as incurred, or
(b) when expenditure may be brought into account as qualifying expenditure.
(3) Further capital expenditure by the lessor on the ship shall be added to the original cost of providing the ship to determine-
(a) whether the lessor is entitled to capital allowances in respect of the further expenditure, and
(b) if he is, the rate of writing-down allowances to which he is entitled.
References to the cost of providing the ship shall accordingly be read as including any such further expenditure.
(4) The amounts to be taken into account under this paragraph are limited to the amounts that would otherwise have been qualifying expenditure for the purposes of capital allowances.
History
Amended by Schedule 2 CAA 2001. Up to 31st March 2001 subparagraph 2 read:
(2) The cost of providing the ship shall be determined without regard to the provisions of the Capital Allowances Act 1990 as to-
(a) when expenditure is treated as incurred, or
(b) when expenditure may be brought into account as qualifying expenditure.
References
| Cost of providing ship | TTM10430 |