Section 149 | Exclusions: later events

(1)Expenditure on the provision of a ship is not, and is treated as never having been, expenditure on new shipping if—

(a)at a time during the period mentioned in subsection (2), the ship is not a qualifying ship,

(b)the expenditure is allocated to a pool as a result of an election under section 129 (election to use appropriate non-ship pool), or

(c)section 107 applies in relation to the expenditure (overseas leasing).

(2)The period referred to in subsection (1)(a) is—

(a)the period of 3 years beginning with the time when the ship is first brought into use for the purposes of a qualifying activity carried on—

(i)by the person (“A”) who incurred the expenditure, or

(ii)if earlier, by a person connected with A, or

(b)if shorter, the period beginning with that time and ending when neither A nor a person connected with A owns the ship.