Capital Allowances Act 2001 section 140

Notice attributing deferred amounts to new expenditure

Section 140 sets out how a shipowner can allocate deferred balancing charge amounts to new shipping expenditure by giving notice to HMRC, and the conditions that must be met for such an attribution to be valid.

• A shipowner may notify HMRC to attribute all or part of a deferred balancing charge amount to new shipping expenditure, with the attributed amount matching an equal amount of new expenditure.
• The new shipping expenditure must be incurred within 6 years of the disposal event that triggered the original balancing charge, either by the shipowner or by another company in the same group.
• An amount can only be attributed to new shipping expenditure to the extent that other deferred amounts have not already been attributed to that same expenditure, and earlier deferred amounts must be attributed first.
• Where the new expenditure is incurred by another group company rather than the shipowner, the notice is only effective if that other company joins the shipowner in giving it.