97(1)The following provisions apply where—U.K.
(a)there is a disposal of a ship in relation to which paragraph 94 applies to restrict the capital allowances available, and
(b)a disposal value falls fall to be brought into account.
The reference in paragraph (a) to a disposal of ship includes a disposal of a part of a ship, or of an interest in a ship or a part of a ship.
(2)The disposal value is first allocated between the [F1tonnage tax (main rate)] pool and the [F1tonnage tax (special rate)] pool in the same proportions as the cost of providing the ship was allocated to those pools.
(3)If the amount allocated to the [F2tonnage tax (main rate)] pool exceeds the amount of qualifying expenditure remaining in that pool, any excess shall be taken to the [F2tonnage tax (special rate)] pool.
(4)A balancing charge arises only if the amount taken to the [F3tonnage tax (special rate)] pool exceeds the amount of qualifying expenditure remaining in that pool.
Textual Amendments
F1Words in Sch. 22 para. 97(2) substituted (with effect in accordance with s. 57(8)-(9) of the amending Act) by Finance Act 2011 (c. 11), s. 57(4)(a)
F2Words in Sch. 22 para. 97(3) substituted (with effect in accordance with s. 57(8)-(9) of the amending Act) by Finance Act 2011 (c. 11), s. 57(4)(a)
F3Words in Sch. 22 para. 97(4) substituted (with effect in accordance with s. 57(8)-(9) of the amending Act) by Finance Act 2011 (c. 11), s. 57(4)(b)
Modifications etc. (not altering text)
C1Sch. 22 para. 97(2)-(4) modified (with effect in accordance with s. 10(8)-(13) of the amending Act) by Finance Act 2011 (c. 11), s. 10(5)-(7)