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HMRC internal manual

Tonnage Tax Manual

Ship leasing: Certification of ship leases

Any claim by a lessor for capital allowances in respect of expenditure on the provision of a qualifying ship must be accompanied by a certificate stating either-

  • that the ship is not leased, directly or indirectly, to a company subject to tonnage tax, or
  • that neither paragraph 90 (defeased leasing) nor paragraph 92 (sale and lease-back arrangements) applies in relation to the lease.

Where a lease is entered into between 18 December 2002 and 16 April 2003, and the second exception in TTM10415 applies, the certificate must state that the lease is such that, by virtue of paragraph 89A (exception of ordinary charters), paragraph 89(1) does not apply.

Both the lessor and the lessee must sign the certificate.

Change of circumstances

If the circumstances change, so that the position ceases to be as described in the certificate, then the lessor must give notice of that fact to HMRC.

Any such notice must be given within three months after the end of the chargeable period in which the change takes place.

If the lessor fails to notify HMRC of any such change within the time limit, he may be liable to a penalty under FA89/S164. Refer any such cases to the Tonnage Tax Technical Adviser before instigating penalty proceedings.


FA00/SCH22/PARA93 (certificates required to support claim by lessor) TTM17541