Income Tax Act 2007 section 54

Excluded activities: leasing of ships

Section 54 provides transitional rules that modify how the ship leasing exclusion (section 194) applies to shares issued before certain dates, for the purposes of loss relief on disposal of shares.

• For shares issued before 6 April 2007, the ship leasing exclusion in section 194 applies without the rule in subsection (7).
• For shares issued before 6 April 2004, section 194 applies with further modifications, replacing references to "offshore installations" with "oil rigs".
• The pre-2004 rules define an "oil rig" as any ship that is an offshore installation under the Mineral Workings (Offshore Installations) Act 1971.
• These transitional provisions ensure that the correct version of the ship leasing exclusion is applied depending on when the shares were originally issued.