Capital Allowances Act 2001 section 143

Effect of attribution

Section 143 explains how a deferred amount, once attributed to new shipping expenditure by notice, is brought into account as a disposal value in the relevant single ship pool.

• When a shipowner gives notice attributing a deferred amount to expenditure on a new ship, that amount must be recorded as a disposal value
• The disposal value is recognised in the chargeable period in which the new shipping expenditure is incurred
• The disposal value is entered in the single ship pool to which the new shipping expenditure has been allocated
• This mechanism ensures the shipowner's earlier tax relief is properly offset while keeping the expenditure within the plant and machinery allowances framework