Capital Allowances Act 2001 section 146

Basic meaning of expenditure on new shipping

Section 146 sets out the basic conditions that must be met for expenditure on the provision of a ship to qualify as expenditure on new shipping for the purposes of the deferment rules.

• The expenditure must be qualifying expenditure incurred wholly and exclusively for a qualifying activity carried on by the person incurring it
• At the time the expenditure is incurred, it must appear that the ship will be brought into use as a qualifying ship and will remain so for at least three years
• The expenditure must be allocated to a single ship pool
• The basic definition is subject to further exclusions and restrictions set out in sections 147 to 150