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HMRC internal manual

Tonnage Tax Manual

From
HM Revenue & Customs
Updated
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Introduction to tonnage tax: Tonnage tax profits

Example computation

A company operates the following vessels during the accounting period, year ended 31 December 2013:
 

Ship Net Tonnage Ownership Days Operated
       
Oil Tanker 18/12/1988 Owned 365
Parcel Tanker 14583 Time-chartered 180
Supply vessel 310 Finance-leased 365

The tonnage tax profits may be calculated as follows:

 

 

  Oil Tanker Gas Tanker Supply Vessel      
             
    Daily Profit   Daily Profit   Daily Profit
Net Tons 32495   14583   310  
0-1,000 10 x 0.60 6 10 x 0.60 6 3 x 0.60 1.8
1,001-10,000 90 x 0.45 40.5 90 x 0.45 40.5    
10,001-25,000 150 x 0.30 45 45 x 0.30 13.5    
>25,000 74 x 0.15 11.1        
Total Daily Profit   102.6   60   1.8
No of Days   365   180   365
Profit for AP   37,449   10,800   657
CT Profit   48,906        

 

 

 

References

Method of calculation TTM01300