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HMRC internal manual

Tonnage Tax Manual

The 75% limit on charters-in: How to calculate

Example 3: All ships operated for whole accounting period

A company operates the following ships during year ended 31/12/2003:
 

Ship Control No. of days Net tonnage
       
Tanker 1 Time chartered 365 30000
Tanker 2 Time chartered 365 20000
Bulk carrier Finance leased 365 10000
Gas tanker Bareboat chartered 365 15000
Product tanker 1 Time chartered 365 5000
Product tanker 2 Owned 365 5000
Total tonnage     85,000

The vessels neither owned nor bareboat chartered are

 

 

Ship Control No. of days Net tonnage
       
Tanker 1 Time chartered 365 30000
Tanker 2 Time chartered 365 20000
Product tanker 1 Time chartered 365 5000
Chartered-in tonnage     55.000

 

 

So the percentage is simply 55,000/85,000 x 100 = 64.7 (below the 75% limit).

 

 

 

References

How to calculate 75% limit TTM05200