Capital Allowances Act 2001 section 152

Ships under 100 tons

Section 152 provides an exception to the normal rule that a qualifying ship must have a gross tonnage of at least 100 tons, where the old ship has been totally lost or damaged beyond economic repair.

• The exception applies when the old ship has been totally lost, or damaged to a point where repair is impossible or not commercially worthwhile
• In these circumstances, a replacement ship registered in any country's shipping register can count as a qualifying ship even if it is under 100 tons gross tonnage
• This relaxation applies both for the purposes of deferring a balancing charge and for qualifying as expenditure on new shipping
• A "registered ship" means any ship entered on an official register of shipping maintained under the law of any country or territory