Qualifying companies and ships: When does a ship cease to be qualifying?
Ship ceases to qualify
A ship will cease to be qualifying when it:
- is lost at sea
- is considered a constructive total loss
- ceases to be certified for navigation at sea; i.e. no longer seagoing
- begins to be used for the provision or goods or services normally provided on land (TTM03610)
- becomes an excluded type of vessel (TTM03620)
Ship does not cease to qualify
A qualifying ship remains qualifying through most stages of its working life. Thus, it continues to be used for a qualifying purpose when:
- in ballast
- laid up awaiting a charter
- in dry-dock undergoing a refit
- being repaired
A ship that is laid up for a long period because of industry conditions or world markets will remain a qualifying ship provided:
- it remains certified for navigation at sea,
- the training commitment is maintained, and
- it does not otherwise become a non-qualifying ship.
- tonnage tax will continue to be due.
See also TTM03700 on change of use and TTM03710 on temporary change of use.
|FA00/SCH22/PARA18 (meaning of operating a ship)||TTM17096|
|FA00/SCH22/PARA19 (qualifying ships)||TTM17101|