Schedule 32 - Tonnage tax: restrictions on capital allowances for lessors of ships
Finance Bill
7:45 pm
Ms Dawn Primarolo (Paymaster General, HM Treasury; Bristol South, Labour)
With regard to paragraph 89A(4)(c), unless there is an express preclusion of the ship being sold to the lessor or any connected party, the existence of such a clause would amount to arrangements under which they might acquire the ship. New paragraph 89A(4)(c) will apply, but there is no problem in paragraph 89A(4)(c) applying where the lessee acts as sales agent for the ship's lessor in a sale to a third party at open market value who receives an arm's length commission for his or her actions as agent. The hon. Gentleman might want to study that in the record.
The second question on paragraph 89A(4)(c) relates to whether a charter is entered into. The answer is no. The condition must apply throughout the term of the lease if paragraph 89A or C is to be satisfied. With that clarification I hope that the hon. Gentleman's questions have been dealt with.
Question put and agreed to.
Schedule 32 agreed to.