TTM03180 - Qualifying companies and ships: Ship in service of government department

A bareboat charter-out is allowed in the regime if

• the ship is registered in the UK, and
• it is used by a Government department under a charter to the Crown, and
• there is in force under section 308(2) of the Merchant Shipping Act 1995 an Order in Council providing for the registration of government ships in the service of that department.

The legislation (FA00/SCH22/PARA18(6)(b)) refers to ships which are chartered by demise to the crown - ‘charter by demise’ is an alternative term for a bareboat charter.

For this purpose a Government department includes a Northern Ireland, Wales or Scotland department.

Although it is more widely drawn, this provision will most commonly apply to ships that are chartered to the Ministry of Defence

References

FA00/SCH22/PARA18(6) (ships chartered to the Crown)	TTM17096
Bareboat charters-out	TTM03150