What does Schedule 3 paragraph 24 of the Capital Allowances Act 2001 do?

Schedule 3 paragraph 24 exempts certain ships brought into use before 20 July 1994 from the further registration requirement imposed by section 154. It acts as a grandfathering provision, ensuring that pre-existing qualifying arrangements are not disadvantaged by a registration condition introduced subsequently under United Kingdom capital allowances law.

Which ships qualify for the exemption from the section 154 registration requirement?

Ships that were brought into use before 20 July 1994 for the purposes of a qualifying activity qualify for the exemption. The qualifying activity must have been carried on by the person who incurred the expenditure on providing the ship, or by a person connected with that person.

What is the further registration requirement under section 154 of the Capital Allowances Act 2001?

Section 154 imposes an additional registration requirement that must generally be satisfied for capital allowances to be available in respect of a ship. Paragraph 24 of Schedule 3 disapplies this requirement for ships already in qualifying use before 20 July 1994, protecting pre-existing arrangements from the later-introduced condition.

Can a connected person's use of the ship satisfy the paragraph 24 exemption?

Yes. The exemption applies where the ship was used for a qualifying activity carried on either by the person who incurred the expenditure on providing it, or by someone connected with that person. This means a connected party's qualifying use before 20 July 1994 is sufficient to disapply the section 154 registration requirement.

Capital Allowances Act 2001 Schedule 3 paragraph 24

Further registration requirement

Schedule 3 paragraph 24 exempts certain ships brought into use before 20 July 1994 from the further registration requirement that would otherwise apply under section 154.

Section 154 imposes a further registration requirement on ships claiming capital allowances, but this paragraph disapplies it in specific circumstances.
The exemption applies where the ship was brought into use before 20 July 1994.
The ship must have been used for the purposes of a qualifying activity carried on by the person who incurred the expenditure on providing it, or by a connected person.
This is a transitional provision protecting pre-existing arrangements from a registration requirement that was introduced later.

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