Capital Allowances Act 2001 section 155

Change in the persons carrying on the qualifying activity

Section 155 ensures that the shipping deferment rules continue to apply when there is a change in the persons carrying on the qualifying activity, provided the activity has not permanently ceased.

• The section applies where someone is carrying on the same qualifying activity previously carried on by the original shipowner, and the activity has not permanently ceased as a result of the changes in personnel
• It also covers situations where the qualifying activity is treated as continuing under section 948 of the Corporation Tax Act 2010, such as transfers of a trade between companies in common ownership
• Any expenditure incurred by the successor for the purposes of the qualifying activity is treated as if it had been incurred by the original shipowner, allowing it to be set against the deferred balancing charge
• References to the shipowner in relation to giving notices (such as notices to vary the attribution of expenditure) are read as references to whoever is carrying on the qualifying activity at the time the notice is given or required to be given