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HMRC internal manual

Tonnage Tax Manual

The 75% limit on charters-in: If limit exceeded


Exceeding the 75% limit:

  • may allow HMRC to exclude company or group from tonnage tax, (see TTM05310);
  • will invalidate elections made in initial period, (see TTM02410); or
  • will defer the effect of elections made after initial period, (see TTM02410).

But a renewal election may still be made at a time when the limit is exceeded (see TTM02600).


FA00/SCH22/PARA38 (election not effective if limit exceeded) TTM17231
FA00/SCH22/PARA39 (exclusion of company if limit exceeded) TTM17236
FA00/SCH22/PARA40 (exclusion of group if limit exceeded) TTM17241