TTM03001 - Qualifying companies and ships: Qualifying company

Meaning

A company is a ‘qualifying company’ for tonnage tax purposes if-

• it is within the charge to corporation tax,

• it operates (see TTM03100) one or more qualifying ships (see TTM03500), and

• those ships are strategically and commercially managed in the United Kingdom (see TTM03800)

Exception - temporarily ceasing to operate qualifying ships

The only exception to this definition is that a company that temporarily ceases to operate qualifying ships may continue to be a qualifying company if certain conditions are met (see TTM03050).

Non-residents

A non-resident company trading in the UK through a permanent establishment (branch or agency) is within the charge to Corporation Tax, and can be a qualifying company if the other conditions are satisfied. (See TTM03800).

References

FA00/SCH22/PARA16 (qualifying companies and groups)	TTM17086
Meaning of ‘operating a ship’	TTM03100
Definition of a ‘qualifying ship’	TTM03500
The meaning of ‘strategically and commercially managed in the UK’	TTM03800