Capital Allowances Act 2001 section 149

Exclusions: later events

Section 149 sets out the circumstances in which expenditure on a ship will lose its status as expenditure on new shipping, so that it can no longer be used to defer a balancing charge.

• If the ship ceases to be a qualifying ship at any time during the first three years after it is first brought into use (or earlier if sold to an unconnected party), the expenditure loses its new shipping status
• If the expenditure is allocated to a non-ship pool following an election under section 129, it is excluded from being treated as new shipping expenditure
• If section 107 applies because the ship is used for overseas leasing that is not protected leasing, the expenditure is similarly excluded
• Where expenditure is excluded, it is treated as never having been expenditure on new shipping, meaning any deferment of a balancing charge attributed to it is unwound