TTM14001 - Exiting tonnage tax: Types of exit
Voluntary exits
There are four possible reasons for voluntary exits
from the tonnage tax regime:
- Expiry of election (FA00/SCH22/PARA13 (1)), see TTM14010;
- A withdrawal notice takes effect under FA00/SCH22/PARA15A, see TTM14080;
- Ceasing to be a qualifying company or group (FA00/SCH22/PARA16), see TTM14020;
- Operation of the merger provisions where no dominant party (FA00/SCH22/PARA123 (4)), see TTM14040.
Forced
exits
There are three possible reasons for forced exits
from the tonnage tax regime:
- Operation of the merger provisions where the qualifying non-tonnage tax group or company (QNT) is dominant party (FA00/SCH22/PARA123 (3)), see TTM14050;
- Exclusion for failing to meet 75% chartered in rule (FA00/SCH22/PARA39 and PARA40), see TTM14060;
- Exclusion for tax avoidance (FA00/SCH22/PARA42), see TTM14070.
Exit charges
There is a specific exit charge under FA00/SCH22/PARA137 onwards only where the exit is for reasons relating wholly or mainly to tax, or there is expulsion for tax avoidance, see TTM14200.
References
| Guidance | Page |
|---|---|
| FA00/SCH22/PARA13 (period for which election is in force) | TTM17061 |
| FA00/SCH22/PARA15A (withdrawal notices) | TTM14080 |
| FA00/SCH22/PARA16 (qualifying companies groups) | TTM17086 |
| FA00/SCH22/PARA39 (exclusion of company if 75% chartered in limit exceeded) | TTM17236 |
| FA00/SCH22/PARA40 (exclusion of group if 75% chartered in limit exeeded) | TTM17241 |
| FA00/SCH22/PARA42 (exclusion for tax avoidance) | TTM17251 |
| FA00/SCH22/PARA123 (merger of T (tonnage tax group or company) and QNT (qualifying non-tonnage tax group or company)) | TTM17691 |
| FA00/SCH22/PAR137 (withdrawal of relief) | TTM17761 |