TTM06120 - Relevant shipping profits: Secondary activities qualifying up to set limits

The secondary activities that qualify up to set limits are described in SI00/2303/REG3 (4). There are three categories:

  • Work carried out for third parties, see TTM06130;
  • Betting and gambling, see TTM06150;
  • Sale of luxury goods, see TTM06160.

Cliff edge

Some of the rules allow activities up to a certain limit.  Where this limit is breached, the whole of the profit or loss from that activity will fall outside the tonnage tax ring-fence.  HMRC will apply this criterion flexibly in relation to occasional minor breaches, but not if breaches become habitual.

References

SI00/2303/REG3 (4) (permitted levels)

TTM18003

SI00/2303/REG3 (4) Secondary activities qualifying up to a permitted level

TTM06120