Capital Allowances Act 2001

132 Disposal events and single ship poolU.K.

(1)A person is required to bring a disposal value into account in a single ship pool if the ship—

(a)is provided for leasing, and

(b)begins to be used otherwise than for a qualifying purpose within the first 4 years of the designated period.

(2)If any disposal event (including one under subsection (1)) occurs in relation to a single ship pool—

(a)the available qualifying expenditure in the single ship pool is allocated, for the chargeable period in which the event occurs, to the appropriate non-ship pool,

(b)the disposal value must be brought into account as a disposal value for that chargeable period in the appropriate non-ship pool, and

(c)the single ship pool ends without a final chargeable period and without any liability to a balancing charge arising.

(3)Subsections (1) and (2) apply even if, as a result of an election under section 129, some of the qualifying expenditure on the provision of the ship has been allocated to the appropriate non-ship pool.

(4)In subsection (1) “leasing”, “qualifying purpose” and “designated period” have the same meaning as in Chapter 11 (overseas leasing).