TTM17226 - Schedule 22 Finance Act 2000: Part V other requirements - Para 37 the requirement that not more than 75 percent of fleet tonnage is chartered in

FA00/SCH22/PARA37

(1) It is a requirement of entering or remaining within tonnage tax-

(a) in the case of a single company, that not more than 75%; of the net tonnage of the qualifying ships operated by it is chartered in;

(b) in the case of a group, that not more than 75%; of the aggregate net tonnage of the qualifying ships operated by the members of the group that are qualifying companies is chartered in.

(2) For this purpose a ship is “chartered in”-

(a) in relation to a single company, if it is chartered to the company otherwise than on bareboat charter terms, or

(b) in relation to a group, if it is chartered otherwise than on bareboat charter terms to a qualifying member of the group by a person who is not a qualifying member of the group.

In paragraph (b) “qualifying member of the group” means a qualifying company that is a member of the group.

(3) A ship shall not be counted more than once in determining for the purposes of sub-paragraph (1)(b) the aggregate net tonnage of the qualifying ships operated by the members of a group that are qualifying companies.

(4) In the following provisions the requirement in this paragraph is referred to as “the 75%; limit”-

(a) paragraph 38 (election not effective if limit exceeded), and

(b) paragraphs 39 and 40 (exclusion of company or group where limit exceeded).

(5) References to the limit being exceeded in an accounting period are to its being exceeded on average over the period in question.

References

Outline of 75% limit on charters-in	TTM05001