Part 2 Plant and machinery allowances

Chapter 12 Ships

Pooling and postponement of allowances

131 Effect of postponement

(1)

If a person gives notice in respect of a chargeable period under section 130—

(a)

the allowance is withheld or withdrawn to the extent that it is postponed, but

(b)

sections 57 to 59 (calculation of available qualifying expenditure) apply as if the allowance had been made to the person without any postponement.

(2)

On making a claim, the person is entitled to have all or part of a postponed first-year allowance made to him as a first-year allowance for one or more subsequent chargeable periods in which he is carrying on the qualifying activity.

(3)

On making a claim, the person is entitled to have all or part of a postponed writing-down allowance made to him as a writing-down allowance for one or more subsequent chargeable periods in which he is carrying on the qualifying activity.

(4)

The total amount of any first-year allowances made under subsection (2) or writing-down allowances made under subsection (3) must not exceed the amount of the postponed allowance in question.

(5)

A writing-down allowance made under subsection (3) is ignored for the purposes of section 59 (unrelieved qualifying expenditure).

(6)

The fact that a postponed writing-down allowance is claimed for a chargeable period does not affect entitlement to, or the amount of, any other writing-down allowance to which the person is otherwise entitled for that chargeable period.

(7)

A postponed allowance is not, merely because of the postponement, included in the reference in F1section 101(3) of CTA 2010 (group relief: meaning of “capital allowance excess”) to an allowance or amount F2brought forward from an earlier period.