TTM02301 - Tonnage tax elections: Example 1
Election in a further window of opportunity.
A singleton company decides it wants to make a tonnage tax election on 30 June 2006. Its accounting date is 31 December each year.
The normal rule is that a company elects in with effect from the beginning of the accounting period during which the election is made, i.e. 1 January 2006; or it can with the HMRC’s agreement:
* backdate the election to 1 January 2005
* elect in with effect from the beginning of the accounting period following that during which it made the election, i.e. 1 January 2007; or
* in exceptional circumstances, elect in with effect from the beginning of the accounting period following the one after that during which the election was made, i.e. 1 January 2008.
References
General rule on election taking effect | TTM02200 |
Backdating election to earlier AP | TTM02210 |
Deferring election to next AP | TTM02220 |
Deferring election to next but one AP | TTM02230 |