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HMRC internal manual

Tonnage Tax Manual

Relevant shipping profits: Secondary activities qualifying up to set limits

The secondary activities that qualify up to set limits are described in SI00/2303/REG3 (4). There are three categories:

  • Work carried out for third parties - see TTM06130
  • Betting and gambling - see TTM06150
  • Sale of luxury goods - see TTM06160

Cliff edge

Some of the rules allow activities up to a certain limit.  Where this limit is breached, the whole of the profit or loss from that activity will fall outside the tonnage tax ring-fence.  HMRC will apply this criterion flexibly in relation to occasional minor breaches, but not if breaches become habitual.


SI00/2303/REG3(4) (permitted levels) TTM18003
SI00/2303/REG3(4) Secondary activities qualifying up to a permitted level TTM06120