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) |
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FA00/SCH22/PARA19 (qualifying ships) |