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HMRC internal manual

Tonnage Tax Manual

Withdrawal notice: Effect

Where a company/group leaves tonnage tax under a notice of withdrawal, it is treated for the purposes of calculating capital allowances for plant and machinery in the same way as if its election into tonnage tax had expired at the end of a period of ten years and the company/group had chosen not to renew the election.

The amount of qualifying expenditure for assets used by the company in its tonnage tax activities and held by the company at the point when it leaves tonnage tax is the lower of

* the market value at the time that the company leaves Tonnage Tax
* the cost of the asset



FA00/SCH22/PARA85 (exit – plant and machinery) TTM17466