The 75% limit on charters-in: Outline
Conditions to be satisfied
It is a requirement of entering or remaining within tonnage tax-
- in the case of a single company, that not more than 75% of the net tonnage of the qualifying ships operated by it is chartered-in;
- in the case of a group, that not more than 75% of the aggregate net tonnage of the qualifying ships operated by the members of the group that are qualifying companies is chartered-in.
See TTM05100 for the meaning of ‘chartered-in’.
In practice this test is applied by comparing:
- the total tonnage of qualifying ships ‘chartered-in’ across the ring fence, and
- the total tonnage of the qualifying ships operated by the group.
Where this test applies to an accounting period, the computation is made by reference to the average tonnage chartered-in/operated in that period (see TTM05200).
- TTM05120 for details of the charters to be taken into account
- TTM05300 for the consequences of exceeding the 75% limit
|FA00/SCH22/PARA37(1) (75% test)||TTM17226|
|FA00/SCH22/PARA37(5) (method of computation)||TTM17226|