TTM18011 - Tonnage Tax Regulations 2000: Regulation 11

Ships chartered to partners - further provision relating to chartering-in

SI00/2303/REG11(1) Where a corporate partner carries on activities in partnership which include the operation of a qualifying ship, the calculation whether the 75% limit is exceeded by –

(a) that corporate partner (if it is a single company), or

(b) a group of which that corporate partner is a member, so far as the calculation relates to the corporate partner,
shall be made in accordance with this regulation.

(2) The calculation is as follows:

Step One

Find out the aggregate net tonnage of the qualifying ships that are operated by the members of the partnership concerned, in their capacity as such partners.

Step Two

Find out the proportion, in percentage terms, of the result of Step One which represents tonnage of ships which are chartered to the partners, or to the partnership, otherwise than on bareboat charter terms (“chartered in”), ignoring any such charters which are from another qualifying member of any group of which the corporate partner is also a member.

Step Three

Determine the corporate partner’s share of the results of Steps One and Two according to the interests of the partners in the partnership property in the accounting period in question, expressed as a figure of net tonnage and the percentage of it which is chartered in.

Step Four

Follow Steps One to Three for each partnership of which the corporate partner is a member and aggregate the results, to arrive at a total figure of net tonnage and the percentage of it which is chartered in.

Step Five

Aggregate the results of Step Four with the results of the calculation for the purposes of paragraph 37(1)(a) or (b) of Schedule 22, as the case may be, in relation to any ships other than those which the corporate partner operates as a member of a partnership.

Step Six

Apply paragraph 37(1)(a) or (b) of Schedule 22, as the case may be, to the results of Step Five.
(3) Where the interests of the partners in the partnership property, expressed as a proportion of the whole, vary in the course of an accounting period, the interest of a corporate partner for that period shall be calculated according to the average interest of that partner during that period.

References

75% limit on chartering-in to partner	TTM13140
Example	TTM13150