Capital Allowances Act 2001 section 150

Exclusions where expenditure not incurred by shipowner

Section 150 removes the "new shipping" status of expenditure on a ship where that expenditure was incurred not by the shipowner but by a fellow group company, and certain events then occur within three years.

• Where a company in the same group as the shipowner incurs expenditure on providing a ship, that expenditure loses its new shipping status if the company disposes of the ship before using it, or within three years of first using it, for a qualifying activity.
• The new shipping status is also lost if the company and the shipowner leave the same group at any point within three years of the ship first being used for the company's qualifying activity.
• These exclusions do not apply if the triggering event is caused by the total loss of the ship or irreparable damage — meaning damage that makes repair impossible or not commercially worthwhile.
• Any changes in group membership that occur after the ship has been totally lost or irreparably damaged are ignored for the purposes of these rules.