Capital Allowances Act 2001 section 94

Ships

Section 94 provides an exclusion from the long-life asset rules for expenditure on certain sea-going ships incurred before 1 January 2011.

• Expenditure on a sea-going ship incurred before 1 January 2011 can be excluded from long-life asset treatment if certain conditions are met
• The ship must not be an offshore installation
• The primary use of ships of the same kind must be for purposes other than sport or recreation — this means cruise liners qualify for the exclusion
• Where the exclusion applies, the expenditure benefits from the standard writing-down allowance rate rather than the lower long-life asset rate