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HMRC internal manual

Tonnage Tax Manual

Tonnage tax elections: How to elect?

Form of election

The initial tonnage tax election should contain the following particulars (ignoring the group requirements where there is only a singleton company):

  • The name and unique taxpayer reference of each qualifying company in the group.

  • A name for the tonnage tax group that can be used as convenient shorthand in correspondence and on tax returns.  For example, ‘XYZ TT Group’.

It is helpful to include ‘tonnage tax’ in the name, as a tonnage tax group may have a different membership to the UK group for other tax purposes.

  • Full details of the tonnage tax group structure, including details of non-qualifying companies.

For many groups this will be a straightforward comment to the effect that the group consists of XYZ parent company with 100%subsidiaries A, B and C. However, where control is, for instance, traced through individuals or complex share structures, details will be required.  For foreign owned groups, the information should include appropriate details of the overseas structure within which the UK companies are placed.

  • The accounting period(s) from which the election is to take effect.

If this is not the period in which the election is made, an explanation must be given.

  • The signature of an authorised person from each company to confirm that the companies are jointly making the election.

  • A declaration confirming that:

                - all companies included on the election are qualifying companies,

                - all qualifying companies in the tonnage tax group are included in the election, and

                - a certificate of training commitment approval from the Department for Transport is in force.

A renewal election should contain the above information, except that:

  • A start date is not required.

  • The training declaration should be that a training certificate is in force and that the group or company is not subject to a certificate of         non-compliance.


FA00/SCH22/PARA8 (method of making election) TTM17036
FA00/SCH22/PARA9 (person by whom election to be made) TTM17041
Form of initial election TTM16022
Form of renewal election TTM16022
Who may elect? TTM02100
Action by HMRC on receipt of tonnage tax election TTM02120