TTM03060 - Qualifying companies and ships: Termination of election to remain in tonnage tax

An election to remain in tonnage tax even though no qualifying ships are operated or managed (see TTM03050) will end if and when the company:

  • abandons its intention to resume operating or managing qualifying ships, or
  • begins to operate or manage qualifying ships again.

If the cessation lasts for more than 3 months it should be assumed that the cessation is permanent (that is, that the company has abandoned its intention to resume operating or managing qualifying ships) unless there is evidence to the contrary.

If the company is a singleton company, or if it is the only qualifying company in the group, the cessation provisions (see TTM14001 onwards) will apply from the date that the notice is rescinded or three months after the company ceased to operate or manage a qualifying ship (unless of course the company has resumed operating or managing qualifying ships).

References

FA00/SCH22/PARA17 (temporarily ceasing to operate ships)

TTM17091

FA00/SCH22/PARA137 (exit from tonnage tax)

TTM17761

Election to remain in tonnage tax

TTM03050