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HMRC internal manual

Tonnage Tax Manual

Qualifying companies and ships: Pleasure craft


A ‘pleasure craft’ is defined as a vessel of a kind whose primary use is for the purposes of sport or recreation.

A vessel that has individual fare-paying passengers is not a pleasure craft. For example, a commercially operated cruise liner, although operated primarily for the recreation of its passengers, is not a pleasure craft.

A vessel that is chartered as a whole by its passengers, for example a holiday yacht, is a pleasure craft.

Chartered ‘as a whole’ will include charter by a passenger alone, or by passengers acting together, or by a third party acting on behalf of one or more of the passengers.


FA00/SCH22/PARA20 (1)(b) and (3) (pleasure craft) TTM17106
Excluded vessels TTM03620
Need to consider end-user of chartered ship TTM03675