SCHEDULES
SCHEDULE 22 Tonnage tax
Part XI Special rules for offshore activities
Capital allowances: general
110
1
A tonnage tax company may claim capital allowances for capital expenditure incurred in providing plant or machinery for the purposes of its offshore activities.
2
In such a case F1Part 2 of the Capital Allowances Act 2001 applies as if—
a
an asset used for the purposes of the company’s offshore activities were provided by the company for those purposes on the first occasion after entry into tonnage tax on which it is brought into use for those purposes, and
b
an amount of capital expenditure (the “notional qualifying expenditure”) had been incurred at that time on its provision.
3
The amount of the notional qualifying expenditure is given by paragraph 112 (existing assets) or paragraph 113 (new assets).
4
Where an asset to which this paragraph applies ceases permanently to be used for the purposes of the company’s offshore activities, it is treated for the purposes of F2Part 2 of the Capital Allowances Act 2001 as it applies by virtue of this paragraph as if it had been disposed of at market value.
This does not apply if a disposal value is required to be brought into account under F3section 61(1) of that Act apart from this sub-paragraph.