SolvedCA25250 | PMA: Ships: Disposal events
From HM Revenue & Customs · Capital Allowances Manual
The normal disposal event rules CA23240 apply to the single ship pool. There is an extra disposal event for a single ship pool. A person is required to bring a disposal value to account if the ship is provided for leasing and it begins to be used other than for a qualifying purpose CA24110, CA24120 at some time during the designated period CA24050.
If there is a disposal event in relation to the single ship pool the single ship pool ends. The expenditure in the single ship pool is transferred to the appropriate non-ship pool and the disposal value is brought to account in that pool. This ensures that single ship pools do not automatically generate balancing adjustments on the disposal of a ship.
Example
The Pilgrims partnership has a balance of £750,000 in the single ship pool for the Mayflower on 1 January 2019. If they sell the Mayflower for £850,000 on 15 March 2019 the balance of £750,000 in the single ship pool is transferred to the main pool and the disposal proceeds of £850,000 are deducted from that pool.