TTM05300 - The 75% limit on charters-in: If limit exceeded

Effect

Exceeding the 75% limit:
 

  • may allow HMRC to exclude company or group from tonnage tax, see TTM05310,
  • will invalidate elections made in initial period, see TTM02410, or
  • will defer the effect of elections made after initial period, see TTM02410.

But a renewal election may still be made at a time when the limit is exceeded, see TTM02600.

References

FA00/SCH22/PARA38 (election not effective if limit exceeded) TTM17231
FA00/SCH22/PARA39 (exclusion of company if limit exceeded) TTM17236
FA00/SCH22/PARA40 (exclusion of group if limit exceeded) TTM17241