Regulation 4 Plant and machinery other than expensive motor cars and long-life assets—writing-down basis

(1)

This regulation applies to any asset mentioned in paragraph 85(2) of Schedule 22, where the provisions of Part II of the 1990 Act would have applied to the asset on the footing that the company had not been subject to tonnage tax (“the tax condition”), other than—

(a)

a motor car, to which the provisions of section 34 of the 1990 Act^f1 (expensive motor cars) would have effect on that condition, or

(b)

a long-life asset, where Chapter IVA of Part II of the 1990 Act^f2 would have applied to the capital expenditure incurred on the provision of the asset, on that condition.

(2)

The written down value of the paragraph 85(2)(a) amount for the asset shall be determined by multiplying that amount by the percentage given by the table in paragraph (3).

(3)

That table is as follows—

Length of qualifying holding period for the asset	Percentage of the paragraph 85(2)(a) amount which is qualifying expenditure under Part II of the 1990 Act
Less than or equal to 1 year	75
1 year and one day to 2 years	55
2 years and one day to 3 years	40
3 years and one day to 4 years	30
4 years and one day to 5 years	25
5 years and one day to 6 years	15
6 years and one day to 7 years	12
7 years and one day to 8 years	10
8 years and one day to 9 years	5
More than 9 years	Nil

(4)

References in this regulation and regulations 5 and 6 to the qualifying holding period for an asset are references to the period between—

(a)

the date on which the expenditure represented by the paragraph 85(2)(a) amount, or the part thereof, was incurred, and

(b)

the date on which the company leaves tonnage tax.

Annotations

Footnotes

f1: Section 32 was amended by section 71 of the Finance (No. 2) Act 1992 (c. 48) and section 213(5) of the Finance Act 1994 (c. 9).
f2: Chapter IVA was inserted by paragraph 2 of Schedule 14 to the Finance Act 1997 (c. 16).