Paragraph 22

United Kingdom

(1)

A qualifying ship that begins to be used F1for non-qualifying purposes ceases to be a qualifying ship when it begins to be so used, subject to the following provisions.

(2)

If—

(a)

a company operates a ship throughout an accounting period of the company, and

(b)

in that period the ship is used F2for non-qualifying purposes on not more than 30 days,

that use shall be disregarded in determining whether the ship is a qualifying ship at any time during that period.

(3)

In the case of an accounting period shorter than a year, the figure of 30 days in sub-paragraph (2) shall be proportionately reduced.

(4)

If a company operates a ship during part only of an accounting period of the company, sub-paragraph (2) has effect as if for “30 days", or the number of days substituted by sub-paragraph (3), there were substituted the number of days that bear to the length of that part of the accounting period the same proportion that 30 days does to a year.

(5)

In this paragraph references to use F3for non-qualifying purposes are to—

(a)

use for an activity other than any of the activities mentioned in paragraph 19(1)(a) to (d), or

(b)

use as a vessel of a kind excluded by paragraph 20 from being a qualifying ship.

F4(6)

This paragraph does not apply for the purposes of sub-paragraphs (2) to (5) of paragraph 20A (qualifying dredgers and tugs).

Annotations

Textual amendments

F1: Words in Sch. 22 para. 22(1) substituted (7.4.2005) by Finance Act 2005 (c. 7), Sch. 7 paras. 7(2), 18(2)
F2: Words in Sch. 22 para. 22(2)(b) substituted (7.4.2005) by Finance Act 2005 (c. 7), Sch. 7 paras. 7(3), 18(2)
F3: Words in Sch. 22 para. 22(5) substituted (7.4.2005) by Finance Act 2005 (c. 7), Sch. 7 paras. 7(4), 18(2)
F4: Sch. 22 para. 22(6) inserted (7.4.2005) by Finance Act 2005 (c. 7), Sch. 7 paras. 7(5), 18(2)