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Deferral of balancing charges |
See Also
Allowances - Plant | Deferral of balancing charges | Fixed assets | Ships allowances | Tonnage tax
Select from the following headings:
Background | Developing the schedule | Completing the Schedule | Standard Sub-Schedules | Carry Forward | Related Errors
Legislation was introduced by FA 1995 to give an element of rollover relief for ship disposals post 20 April 1994 whereby any balancing charge arising on disposal could be offset against the cost of another qualifying ship acquired within 6 years. This is because the balancing charge arising on ship's disposal would give rise to a balancing charge within the general pool, as it is treated as sale proceeds within the general pool.
The Deferral of balancing charges schedule is developed from the main Ships allowances schedule, and is held within the 'B' series of schedules.
Some of the data entry cells are described in more detail below:
Deferral brought/carried forward
These cells will be completed automatically by the schedule, although there are data entry cells for any balancing charge deferral brought forward.
Balancing charges deferred CAA 2001 s 134
Enter any balancing charge which you wish to defer on disposal of the ship with reference to the Balancing adjustments column on the Ships allowances schedule. Any remaining balancing charge on the Ships allowances schedule will be transferred to the Ships balancing adjustment to pool line in the General pool
Balancing charges (rolled over)
Enter as a negative amount any balancing charge to be rolled over against expenditure on new shipping under CAA 2001 s 140. This in turn is netted off against the cost of any ship additions on the Ships allowances schedule.
There are no standard supporting schedules.
On carry forward, this schedule is automatically developed in the subsequent computation if it is present in the prior year computation. In the subsequent computation, the deferral brought forward is entered automatically.
© 2009 Thomson Reuters.