TTM03590 - Qualifying companies and ships: When does a ship cease to be qualifying?

Ship ceases to qualify

A ship will cease to be qualifying when it:

  • is lost at sea;
  • is considered a constructive total loss;
  • ceases to be certified for navigation at sea; therefore no longer seagoing;
  • begins to be used for the provision or goods or services normally provided on land (TTM03610); or
  • becomes an excluded type of vessel (TTM03620).

Ship does not cease to qualify

A qualifying ship remains qualifying through most stages of its working life.  Thus, it continues to be used for a qualifying purpose when:

  • in ballast,
  • laid up awaiting a charter,
  • in dry-dock undergoing a refit, or
  • being repaired.                                                                                                                                                                                     

A ship that is laid up for a long period because of industry conditions or world markets will remain a qualifying ship and the tonnage tax regume will continue to apply to it provided:

  • it remains certified for navigation at sea;
  • the training commitment is maintained; and
  • it does not otherwise become a non-qualifying ship.

See also TTM03700 on change of use and TTM03710 on temporary change of use.

References

FA00/SCH22/PARA18 (meaning of operating a ship)

TTM17096

FA00/SCH22/PARA19 (qualifying ships)

TTM17101