Beta This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Tonnage Tax Manual

Capital allowances: Exit from tonnage tax (P&M) on the expiry of an election or the taking effect of a withdrawal notice

Qualifying expenditure

Where a company leaves tonnage tax on the expiry of an election or the taking effect of a withdrawal notice (see TTM14080) it is treated as having incurred qualifying expenditure on its tonnage tax plant and machinery assets equal to the lower of cost or market value. This is instead of the fixed percentage provided for in the Tonnage Tax Regulations 2000(SI.2000/2303)

References

FA05/SCH7/PARA12 (meaning of ‘the ring fence: capital allowances: general; introduction) TTM20012
   
FA05/SCH7/PARA15 (meaning of ‘the ring fence: capital allowances: exit; plant and machinery) TTM20015