TTM03610 - Qualifying companies and ships: Non-qualifying - services normally provided on land

Examples of disallowable types of business

A vessel cannot be a qualifying ship if the main purpose for which it is used is the provision of goods or services of a kind normally provided on land.

Examples of businesses where this rule applies include:

  • retailers (including shops and supermarkets),
  • restaurants,
  • hotels - a ship-based holiday where the ship remains moored and there is no sea transportation element does not qualify for tonnage tax,
  • prisons,
  • radio stations,
  • casinos - a ship that sails out of territorial waters to operate gambling facilities does not qualify for tonnage tax,
  • financial service providers, and
  • offices.

This list is not exhaustive.

References

FA00/SCH22/PARA19 (2) (Services normally provided on land)

TTM17101

Non-qualifying activities

TTM06300