TTM03620 - Qualifying companies and ships: Excluded vessels

A number of types of ship are specifically excluded from tonnage tax by FA00/SCH22/PARA20 and PARA20A.

The definition of a qualifying ship, and the rules governing the exclusion of certain ships, are framed in terms of the use made of the ship.  It is therefore important to look at what the ship is being used for when considering whether a ship is an excluded vessel.

Where a company charters out a ship, the end-use by the charterer is determinative of whether a ship is qualifying.  This also applies when the ship is chartered for a single voyage.  Excluded vessels are:

  • TTM03630       Pleasure craft
  • TTM03635       Fishing vessels or factory ships
  • TTM03640       Harbour, river and estuary ferries
  • TTM03645       Offshore installations
  • TTM03670       Tankers dedicated to a particular oilfield
  • TTM03680       Tugs other than qualifying tugs
  • TTM03690       Dredgers other than qualifying dredgers

Power to amend list of excluded vessels

The Treasury, by order, may add or remove types of vessel from the above list.

References

  • FA00/SCH22/PARA20     TTM17106
  • Need to consider end-user of chartered ship   TTM03675