Capital Allowances Act 2001 section 136

Further conditions for deferment

Section 136 sets out the additional conditions that must be satisfied before a shipowner can defer a balancing charge arising on the disposal of a ship.

• The disposal must be of a specific type, such as the ship ceasing to be owned, being lost, abandoned or destroyed
• The old ship must have been a qualifying ship immediately before the disposal took place
• The shipowner must not have made a loss from the qualifying activity in the period when the balancing charge arises
• No expenditure on the old ship can have been allocated to the overseas leasing pool, certain single asset pools, or a special leasing pool