The 75% limit on charters-in: How to calculate
Example 2: Possible exclusion of group for exceeding limit
A group elects into tonnage tax with effect from 1 January 2001. The group consists of two companies:
- company C has an accounting date of 31 December, and
- company D has an accounting date of 30 September.
If the 75% limit is exceeded in two or more accounting periods the group may be excluded from tonnage tax.
The test applies to the accounting periods of company C and company D. So that:
* If the limit is exceeded in the two-year period ended 30 September 2005, the group may be excluded with effect from 1 October 2005 * If the limit is exceeded in the two-year period ended 31 December 2005, the group may be excluded with effect from 1 January 2006.
|FA00/SCH22/PARA40(1) (limit exceeded for two APs)||TTM17241|
|Accounting periods of group companies||TTM05210|
|Example 1: Deferment of election if test failed||TTM05220|