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HMRC internal manual

Tonnage Tax Manual

From
HM Revenue & Customs
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Capital allowances: Balancing charges (P&M)

Giving effect to balancing charges arising during tonnage tax

A balancing charge is to be brought into account in the corporation tax computation for the period in which it arises, unless a claim to defer the balancing charge is made (see TTM09230).

The amount to be brought into the tax computation is the amount of the balancing charge, calculated as described in TTM09150, as reduced by the appropriate percentage (as described in TTM09210).

The balancing charge is treated as if it arose in connection with a non tonnage tax trade carried on by the company, and is made in taxing that trade.

References

FA00/SCH22/PARA79 (giving effect to balancing charge) TTM17436