TTM14200 - Exiting tonnage tax: Effects of exiting tonnage tax regime

Exit charge: General

The exit charge only applies where a company, or group of companies, ceases to be qualifying for reasons relating wholly or mainly to tax, see TTM14120, or an exclusion for tax avoidance, see TTM05530.  The case should have previously been submitted to the Tonnage Tax Technical Adviser, see TTM14120.

The charge consists of re-instating chargeable gains and balancing charges on the tonnage tax company, if a singleton company, or on all tonnage companies in the group, if a tonnage tax group.

References

Guidance	Page
FA00/SCH22/PARA137 (company ceases to be tonnage tax company)	TTM17761
Exit charge: chargeable gains	TTM14210
Exit charge: balancing charges	TTM14220