Capital Allowances Act 2001 section 145

Requirement to notify where no entitlement to defer amounts

Section 145 requires a shipowner who has previously deferred a balancing charge on a ship to notify HMRC if circumstances arise meaning the shipowner was not entitled to defer all or part of that amount.

• Where a shipowner has deferred a balancing charge under section 135 and circumstances arise removing the entitlement to defer all or part of the amount, the shipowner must notify HMRC, specifying what those circumstances are.
• The notification must be given no later than 3 months after the end of the chargeable period in which the relevant circumstances first arise.
• HMRC may raise a tax assessment as a result of those circumstances at any time from when they arise until 12 months after the shipowner gives the required notice.
• This extended assessment window applies regardless of any normal time limits that would otherwise restrict when assessments can be made.