Capital Allowances Act 2001 section 113

Excess allowances: special provision for ships

Section 113 provides special rules that apply when a ship, whose expenditure has been allocated to a single ship pool, begins to be used for non-protected overseas leasing during the designated period.

• When a ship starts being used for non-protected overseas leasing, any postponed allowances under the single ship pool rules can no longer be claimed from that point onwards.
• The excess allowances recovery mechanism in section 111 takes priority over the single ship pool provisions and cannot be overridden by those rules.
• Any first-year or writing-down allowances that were previously postponed and remain unclaimed are transferred into either a long-life asset pool or an overseas leasing pool in the chargeable period after overseas use begins.
• The "first chargeable period of overseas use" is the period in which the ship is first used for overseas leasing that does not qualify as protected leasing.