[F1165ADecommissioning services supplied by connected personU.K.
(1)Allowances under this Part are restricted under section 165B(1) if—
(a)a person (“R”) who is carrying on, or has ceased to carry on, a ring fence trade enters into an arrangement,
(b)under the arrangement, a person (“S”) who is connected with R provides a service to R, and
(c)all or part of the consideration for the service is decommissioning expenditure.
(2)Subsection (1)(b) may be satisfied whether the service is provided to R directly or indirectly; and in particular it does not matter—
(a)whether R and S are parties to the same contract, or
(b)whether payments are made by R directly to S.
(3)Subsections (4) to (9) apply for the purposes of this section and sections 165B to 165E.
(4)References to providing a service include—
(a)letting a ship on charter or any other asset on hire, and
(b)providing goods which are to be used up in the course of providing a service.
(5)“Decommissioning expenditure” means expenditure in connection with decommissioning.
(6)“Decommissioning” means—
(a)demolishing plant or machinery,
(b)preserving plant or machinery pending its reuse or demolition,
(c)preparing plant or machinery for reuse, or
(d)arranging for the reuse of plant or machinery.
(7)It is immaterial for the purposes of subsection (6)(b) whether the plant or machinery is reused, is demolished or is partly reused and partly demolished.
(8)It is immaterial for the purposes of subsection (6)(c) and (d) whether the plant or machinery is in fact reused.
(9)References to R's expenditure under the arrangement are to so much of the consideration for the service as is decommissioning expenditure incurred by R.]
Textual Amendments
F1Ss. 165A-165E and cross-heading inserted (with effect in accordance with Sch. 32 para. 8 of the amending Act) by Finance Act 2013 (c. 29), Sch. 32 para. 2