Chargeable Gains: Outline
Treatment of gains and losses
Gains or losses excluded by the time apportionment rules
Any gains which would have been chargeable gains under the normal rules, but which are excluded from the charge to tax because they arose on the disposal of an asset that was used (or had been used) as a tonnage tax asset (see TTM08200), will form part of the company’s ‘relevant shipping profits’ (see TTM06010).
Where, exceptionally, the company making the disposal is not (or is no longer) a tonnage tax company, such gains are simply left out of account for tax purposes.
Any losses which would have been allowable losses under the normal rules, but which are not allowable because they accrued on the disposal of an asset that was used (or had been used) as a tonnage tax asset, are not available for set off or carry forward.
Gains or losses which are not excluded by the time apportionment rules
Any chargeable gains or allowable losses on the disposal of assets:
- which are (or have been) tonnage tax assets, and
- which do not fall to be excluded from the charge to tax because they accrued for a period when the asset was not a tonnage tax asset (see TTM08200),
are to be treated as arising otherwise than in the course of the company’s tonnage tax trade.
Any such chargeable gains will therefore be excluded from the company’s relevant shipping profits, and will be brought into account outside the ring fence. Any such allowable losses may be utilised or carried forward in the normal way.
See TTM08020 for treatment of losses brought forward into tonnage tax and those arising within the tonnage tax regime.
Gains arising from the application of the roll-over relief provisions
Any chargeable gains that accrue as a result of the amendments to the roll-over relief rules (see TTM08300) are also to be treated as arising otherwise than in the course of the company’s tonnage tax trade. The same consequences will follow as described in the previous paragraph.
|FA00/SCH22/PARA44 (relevant shipping profits)||TTM17261|
|FA00/SCH22/PARA65 (time-apportioned gains and losses)||TTM17366|
|FA00/SCH22/PARA67 (roll-over relief provisions)||TTM17376|