TTM17491 - Schedule 22 Finance Act 2000: Part X the ring fence - capital allowances - ship leasing - Para 89A quantitative restrictions not to apply to ordinary charters
FA00/SCH22/PARA89A
(1) Paragraph 94 to 102, and paragraph 89(1) so far as relating to those paragraphs, do not apply in the following cases.
(2) The first case is where the ship is chartered out by a person who is responsible바카라 사이트”
(a) for the operation of the ship, including the appointment of the master and those members of the crew engaged in navigation, throughout the period of the charter, and
(b) for defraying all expenses in connection with the ship throughout that period, or substantially all such expenses other than those directly incidental to a particular voyage or to the employment of the ship during that period.
For the purposes of this sub-paragraph a person is 바카라 사이트śresponsible바카라 사이트ť if he is responsible as principal or if he appoints another person, other than the lessee or a person connected with the lessee, to be responsible in his place.
(3) The second case is where바카라 사이트”
(a) the ship is chartered out by a person acting in the course of a trade that consists of, or to a significant extent includes, operating ships, and
(b) the conditions in sub-paragraph (4) are met.
(4) Those conditions are바카라 사이트”
(a) that the period of the charter does not exceed seven years, and there is no provision or agreement under which it could be extended beyond seven years;
(b) that the period of the charter, together with any other periods in the same ten years during which the ship is chartered out to the lessee or a person connected with him, does not exceed seven years in total;
(c) that there are no arrangements under which the lessee or a person connected with him may acquire the ship, whether directly or indirectly, from the lessor.
In paragraph (b) 바카라 사이트śthe same ten years바카라 사이트ť means any period of ten years that includes the period of the charter mentioned in that paragraph.
(5) References in this paragraph to the period of a charter are to the term specified in the lease or, if longer, the actual period during which the ship is chartered.
(6) Section 1122 of the Corporation Tax Act 2010 (connected persons) applies for the purposes of this paragraph.