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HMRC internal manual

Tonnage Tax Manual

HM Revenue & Customs
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Tonnage tax elections: Renewal election

Renewal election at any time

An election may be renewed at any time whilst the previous election remains in force, subject to the exceptions described below.

A renewal election follows the same rules as those for an initial election as regards the type of election, the method of election, the person by whom an election is to be made, the period for which the election is in force, and when an election ceases to have effect.

A renewal election has effect from the date that it is made, and supersedes the existing election.

Renewal election not affected by 75%

A renewal election, which is otherwise valid, will remain effective even if the 75% (see TTM05300) is not satisfied at the time that it is made. However the company or group may still be excluded under the normal rules (see TTM05310) if it exceeds the 75% limit in two or more consecutive accounting periods, regardless of whether those periods fall wholly or partly before the date of the renewal election

Renewal election affected by training requirement

A renewal election will be ineffective if:

  • no training certificate is in force (see TTM04001), or
  • a ‘certificate of non-compliance’ with the training requirement is in force (see TTM04230).

Rolling election

A company or group may renew its election every year if it wishes to do so.

For example, a company or group may renew its election every year to ensure that tax provisions in its commercial accounts continue to be based on its liability under the tonnage tax regime.  Eliminating the deferred tax charge in its accounts may be a main reason why a quoted group elects into tonnage tax.


FA00/SCH22/PARA15 (renewal election) TTM17071
FA00/SCH22/PARA26(3) (training commitment required) TTM17171
FA00/SCH22/PARA32(5) (effect of certificate of non-compliance) TTM17201
Form of election TTM02110
Period for which election in force TTM02500