Taxes Consolidation Act 1997 Schedule 18B paragraph 9

Qualifying ship used as vessel of an excluded kind

Paragraph 9 deals with the circumstances in which a qualifying ship loses that status by being used as a vessel of an excluded kind, and provides a limited tolerance for temporary excluded use.

• A qualifying ship that begins to be used as a vessel of an excluded kind immediately ceases to be a qualifying ship.
• However, if the ship is used as a vessel of an excluded kind on no more than 30 days during an accounting period in which the company operates it throughout, that use is disregarded.
• Where the accounting period is shorter than a year, the 30-day tolerance is proportionately reduced.
• Where the company operates the ship for only part of an accounting period, the tolerance is scaled back in proportion to the length of that part relative to a full year.