Capital Allowances Act 2001 section 128

Expenditure which is not to be allocated to single ship pool

Section 128 sets out the circumstances in which expenditure on a ship must not be allocated to a single ship pool, primarily where the ship is provided for leasing or for special leasing of plant or machinery.

• Expenditure on a ship provided for leasing cannot go into a single ship pool unless the ship avoids overseas leasing (or only engages in protected leasing) during the designated period
• The ship must also appear likely to be used solely for a qualifying purpose throughout the designated period
• Expenditure is always excluded from a single ship pool where the qualifying activity is special leasing of plant or machinery
• Key terms such as leasing, overseas leasing, protected leasing, qualifying purpose and designated period carry the same meanings as in Chapter 11 on overseas leasing