Capital Allowances Act 2001 section 133

Ship not used

Section 133 deals with the consequences when a ship allocated to a single ship pool is disposed of without ever having been brought into use for the qualifying activity.

• If a person incurs qualifying expenditure on a ship for a qualifying activity but disposes of it without ever using it for that activity, this section applies
• All writing-down allowances previously made or postponed in respect of the single ship pool must be withdrawn
• The withdrawn allowance amounts are reallocated to the appropriate non-ship pool for the chargeable period in which ownership ceases, so relief for the expenditure is not lost
• These adjustments are made in addition to any adjustments required under section 132 relating to disposal events and the single ship pool — both sections can apply to the same event