Capital gains: Tonnage tax assets
Asset used by another company in same group
Asset used by tonnage tax company
An asset owned by a tonnage tax company can still be a tonnage tax asset even if it is used for the tonnage tax activities of another tonnage tax company in the same group.
The provision of an asset for use by a fellow group member in its tonnage tax trade will be a secondary qualifying activity of the owner’s tonnage tax trade, if the use of that asset would have been a core qualifying activity in its own trade.
Asset owned by non-tonnage tax company
An asset owned by a non-tonnage tax company cannot be a tonnage tax asset, even if it is used for the purposes of the tonnage tax activities of a tonnage tax company in the same group.
The owner is using the asset as a hirer or lessor, and this activity cannot be a tonnage tax activity, as it is not a tonnage tax company. This is a transaction taking place across the ring-fence, and will be subject to the transfer pricing rules in Part VII, (see TTM07300).