TTM02301 - Tonnage tax elections: Example 1

Election in a further window of opportunity.

A singleton company decides it wants to make a tonnage tax election on 30 June 2006. Its accounting date is 31 December each year.
 

The normal rule is that a company elects in with effect from the beginning of the accounting period during which the election is made, that is, 1 January 2006; or it can with the HMRC’s agreement:

• backdate the election to 1 January 2005,
• elect in with effect from the beginning of the accounting period following that during which it made the election, that is, 1 January 2007, or
• in exceptional circumstances, elect in with effect from the beginning of the accounting period following the one after that during which the election was made, 1 January 2008.

References

General rule on election taking effect	TTM02200
Backdating election to earlier AP	TTM02210
Deferring election to next AP	TTM02220
Deferring election to next but one AP	TTM02230