HC Deb 11 July 1984 vol 63 c1079

`(1) Captial expenditure incurred on the provision of a ship by a person carrying on a trade shall be excluded from that person's qualifying expenditure under section 44 of the Finance Act 1971 and capital allowances in respect of such expenditure shall be made to him in accordance with the following provisions of this section.

(2) Allowances in respect of the capital expenditure incurred in a chargeable period ("the first chargeable period") shall be made to the person carrying on the trade as follows— (a) For the first chargeable period—25 per cent. of the amount of such expenditure. (b) For each of the three following chargeable periods—25 per cent. of the amount of such expenditure.

(3) Where for any chargeable period ("the relevant period") an allowance falls to be made under subsection (2)(a) or (b) above, the person there mentioned may, by notice in writing given not later than two years after the end of the relevant period, require the postponement either of the whole of the allowance or of so much thereof as is specified in the notice.

(4) Where a notice has been given under subsection (3) above in respect of any allowance under subsection (2)— (a) the allowance shall, as the case may require, be withheld or withdrawn, or partially withheld or withdrawn, and (b) the person giving the notice may claim the amount withheld or withdrawn as an allowance for any subsequent chargeable period in which he carries on the trade, or may claim allowances not exceeding that amount in the aggregate for any two or more such periods.

(5) All such assessments and adjustments of assessments shall be made as may be necessary to give effect to the provision of this section.

(6) An allowance which is postponed by virtue of this paragraph shall not by reason only of the postponement fall within the references to allowances or amounts carried forward from an earlier year or period in section 169(4)(d), 174(6) and 259(2) of the Taxes Act (loss relief and group relief).'.

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