Capital Allowances Act 2001 section 132

Disposal events and single ship pool

Section 132 deals with what happens when a disposal event occurs in relation to a ship held in a single ship pool, including a specific disposal trigger where a leased ship is used for non-qualifying purposes within the first four years.

• A disposal value must be brought into account in a single ship pool if the ship is provided for leasing and begins to be used for a non-qualifying purpose within the first four years of the designated period
• When any disposal event occurs, the remaining qualifying expenditure in the single ship pool is transferred to the appropriate non-ship pool, and the disposal value is brought into account in that non-ship pool
• The single ship pool ceases to exist without a final chargeable period and without triggering any balancing charge
• These rules apply regardless of whether some qualifying expenditure has already been allocated to the non-ship pool under an earlier election