HMRC internal manual

Tonnage Tax Manual

TTM03620 - Qualifying companies and ships: Excluded vessels

A number of types of ship are specifically excluded from tonnage tax by FA00/SCH22/PARA20 and PARA20A.

The definition of a qualifying ship, and the rules governing the exclusion of certain ships, are framed in terms of the use made of the ship, therefore it is important to look at what the ship is being used for when considering whether a ship is an excluded vessel.

Where a company charters out a ship, you will need to consider the end-use by the charterer in determining whether a ship is qualifying. This also applies when the ship is chartered for a single voyage.

TTM03630 Pleasure craft
TTM03635 Fishing vessels or factory ships
TTM03640 Harbour, river and estuary ferries
TTM03645 Offshore installations
TTM03670 Tankers dedicated to a particular oilfield
TTM03680 Tugs other than qualifying tugs
TTM03690 Dredgers other than qualifying dredgers

Power to amend list of excluded vessels

The Treasury, by order, may add or remove types of vessel from the above list.


FA00/SCH22/PARA20 TTM17106
Need to consider end-user of chartered ship TTM03675