Exiting tonnage tax: Types of exit
Voluntary exitsVoluntary exits from the tonnage tax regime may be for four possible reasons:
- Expiry of election (FA00/SCH22/PARA13 (1); see TTM14010), or
- A withdrawal notice takes effect under FA00/SCH22/PARA15A; see TTM14080, or
- Ceasing to be a qualifying company or group (FA00/SCH22/PARA16; see TTM14020), or
- Operation of the merger provisions (where no dominant party: FA00/SCH22/PARA123 (4); see TTM14040).
Forced exitsForced exits from the tonnage tax regime may be for three possible reasons:
- Operation of the merger provisions (where QNT is dominant party: FA00/SCH22/PARA123 (3); see TTM14050), or
- Exclusion for failing to meet 75 per cent test on charters-in (FA00/SCH22/PARA39 and PARA40; see TTM14060), or
- Exclusion for tax avoidance (FA00/SCH22/PARA42; see TTM14070).
Exit chargesOnly where the exit is for reasons relating wholly or mainly to tax, or there is expulsion for tax avoidance, is there a specific exit charge under
FA00/SCH22/PARA137 onwards; see TTM14200.
|FA00/SCH22/PARA13 (period for which election is in force)||TTM17061|
|FA00/SCH22/PARA15A (withdrawal notices)||TTM14080|
|FA00/SCH22/PARA16 (qualifying companies and groups))||TTM17086|
|FA00/SCH22/PARA39 (exclusion of company if 75 per cent limit exceeded)||TTM17236|
|FA00/SCH22/PARA40 (exclusion of group if 75 per cent limit exceeded)||TTM17241|
|FA00/SCH22/PARA42 (exclusion for tax avoidance)||TTM17251|
|FA00/SCH22/PARA123 (merger of T and QNT)||TTM17691|
|FA00/SCH22/PARA137 (withdrawal of relief)||TTM17761|