TTM17241 - Schedule 22 Finance Act 2000: Part V other requirements - Para 40 the 75 percent limit - exclusion of group if limit exceeded

FA00/SCH22/PARA40

(1) If the 75%; limit is exceeded in relation to a tonnage tax group in two or more consecutive accounting periods of any tonnage tax company that is a member of the group (“the relevant company”), the Inland Revenue may give notice excluding the group from tonnage tax.

(2) The effect of the notice is that the group’s tonnage tax election ceases to be in force from such date as may be specified in the notice.

The specified date must not be earlier than the beginning of the accounting period of the relevant company that follows the second consecutive accounting period of that company in which the limit is exceeded.

(3) Notice under this paragraph need only be given to the relevant company.

This is subject to any arrangements under paragraph 120 (arrangements for dealing with group matters).

References

Consideration of exclusion by inspector	TTM05310