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HMRC internal manual

Tonnage Tax Manual

From
HM Revenue & Customs
Updated
, see all updates

Introduction to tonnage tax: Background

The legislation

Primary legislation

The primary legislation is found in

Section 82 and Schedule 22 Finance Act 2000

Royal Assent was granted on 27 July 2000, although elections into tonnage tax can be effective from 1 January 2000.

Schedule 22 FA2000 was amended by Schedule 32 Finance Act 2003

Schedule 7 FA2005 introduced further changes

Secondary legislation

The secondary legislation comprises six Statutory Instruments

The Tonnage Tax Regulations 2000

Made by the Board of Inland Revenue on 25 August 2000 and coming into force on 31 August 2000, they cover:

* qualifying secondary activities (regulation 3)
* the written down value of assets on the exit of the company from the Tonnage Tax regime (regulations 4, 5 & 6)
* capital allowance rules for companies within the offshore regime (regulation 7)
* the rules relating to corporate partnerships (regulations 8 to 13)

The Tonnage Tax (Training Requirement) Regulations 2000

Made by the Secretary of State the former DETR on 3 August 2000 and coming into force on 31 August 2000, they set out:

* the minimum training obligation
* the submission of an annual training commitment to DfT
* the provision to allow payment in lieu of training (PILOT)
* the submission of returns and any payment due every four months
* a higher rate of payment in case of failure to meet the training commitment.
* Statutory Instrument 1480/2005 (Exception of Financial year 2005)
* Statutory Instrument 1449/2005(Further opportunity for election)
* Statutory Instrument 333/2006 (Exception of Financial year 2006)
* Statutory Instrument 850/2007 (Exception of Financial year 2007).

References

 

FA00/SCH22 (Tonnage tax primary legislation) TTM17000
   
SI00/2303 (The Tonnage Tax Regulations 2000) TTM18000
SI00/2129 (The Tonnage Tax (Training Requirement) Regulations 2000) TTM19000
General principles of tonnage tax TTM01200
Schedule 7 FA2005 TTM20000
Statutory Instrument 1480/2005 (Exception of Financial year 2005) TTM20035
Statutory instrument 1449/2005(Further opportunity for election) TTM20024
General principles of Tonnage Tax TTM01200
Statutory Instrument 333/2006 (Exception of Financial Year 2006) TTM20026
Statutory Instrument 850/2007 (Exception of Financial Year 2007) TTM20027