Capital Allowances Act 2001 section 135

Claim for deferment

Section 135 allows a shipowner who faces a balancing charge following the disposal of a ship to claim deferment of all or part of that charge, provided certain conditions are satisfied.

• A shipowner liable to a balancing charge arising from a disposal event relating to a ship may claim to defer all or part of that charge.
• The ship must have been owned by the shipowner during the chargeable period and provided for the purposes of a qualifying activity carried on by the shipowner.
• The amount that can be deferred is capped by a statutory limit, and additional conditions must also be met before deferment is available.
• For income tax purposes, the deferment claim must be made within the normal time limit for amending the relevant tax return; for corporation tax purposes, the standard claims procedures apply.