Capital Allowances Act 2001 section 156

Connected persons

Section 156 provides an extended definition of "connected persons" for the purposes of the ship deferment rules, ensuring these rules continue to apply when a qualifying activity is transferred between parties.

• A person is connected with another if they meet the standard connected persons test under section 575 of the Capital Allowances Act 2001.
• A person is also connected if they are carrying on a qualifying activity previously carried on by the other person, provided the only changes in who carries on the activity are partial changes (not everyone ceasing) or changes treated as a continuation under corporation tax rules.
• A further connection arises where a person is connected (under the standard test) with someone who is now carrying on a qualifying activity previously carried on by the other person, subject to the same conditions about continuity of the activity.
• Where the expenditure is incurred by someone other than the shipowner, the connected persons of that person are extended to include anyone who is connected with the shipowner under these rules.