The ring fence: Reliefs and deductions
No deduction from tonnage tax profits
No relief, deduction or set-off of any description is allowed against a company’s tonnage tax profits.
For example, no deduction may be made for:
- losses arising in the shipping trade before entry to Tonnage Tax
- losses arising from a non-tonnage tax trade
- group relief surrendered by other group members
- interest paid
See TTM07220 for the treatment of losses that accrued before entry into Tonnage Tax.
(NB Reliefs and deductions may be set off in the normal way against any profits of the tonnage tax company, which fall outside the ring fence.)
|FA00/SCH22/PARA55 (general exclusion of reliefs)||TTM17316|
|Deduction for tax liability||TTM07210|