TTM03700 - Qualifying companies and ships: Effect of change of use
Ceasing to satisfy all conditions
A ship that ceases to satisfy all the conditions described in TTM03500 will normally cease to be a qualifying ship. For example:
- A cross channel ferry will normally cease to be a qualifying ship when it begins to be used as a river ferry, since river ferries are specifically excluded, (see TTM03640).
- A cruise liner will normally cease to be a qualifying ship when it begins to be used as a floating hotel, since use as a floating hotel does not come within the permitted uses in FA00/SCH22/PARA19 (1)(a) - (d), (see TTM03500).
There is an exception where a ship is used for a very short period for a non qualifying purpose. For further information see TTM03710.
If, as a result of a change in use of a ship, a company ceases to operate or manage qualifying ships for a short period, the company may make an election to remain in tonnage tax. For further information see TTM03050.
References
| FA00/SCH22/PARA22 (effect of change of use) | TTM17121 |
| Ship is used for a very short period for a non qualifying purpose | TTM03710 |
| Company ceases to operate or manage qualifying ships for a short period | TTM03050 |