(1) The lessor under the lease is not entitled to capital allowances if the lease is part of sale and lease-back arrangements.

(2) For this purpose ‘sale and lease-back arrangements’ means, subject to sub-paragraph (3) and(3A)*1, any arrangements that take the following form:

Step One

The ship is owned by a tonnage tax company and used for the purposes of its tonnage tax trade.

Step Two

A transaction is entered into, as a result of which (apart from this paragraph) capital allowances would become available to the lessor, under which-

(a)the ship (or an interest in it) is sold, or

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.