Capital Allowances Act 2001 section 142

Variation of attribution

Section 142 allows a shipowner to vary a previous attribution of deferred balancing charge amounts to new ship expenditure, providing flexibility over how deferred amounts are allocated across newly acquired vessels.

• A shipowner may vary an earlier attribution of deferred balancing charge amounts to new qualifying expenditure by giving notice to HMRC.
• The notice must be given within the time limit for making a deferment claim for the earliest chargeable period in which the expenditure affected by the variation is incurred.
• For the purposes of the time limit, it is assumed that the shipowner is liable to a balancing charge and that a deferment claim can be made for that period, even if that is not actually the case.
• Where the expenditure to which the notice relates belongs to a person other than the shipowner, that person must join the shipowner in giving the notice for it to be effective.