TTM14220 - Exiting tonnage tax: Effects of exiting tonnage tax regime

Exit charge: Balancing charges

Where:

• for an accounting period ending not more than six years before the day on which the company ceased to be a tonnage tax company,
• a balancing charge has been wholly or partially reduced by the balancing charge phase-out relief in FA00/SCH22/PARA78,

then the total of all such reductions is assessed as additional profits chargeable to corporation tax immediately before it ceased to be a tonnage tax company (PARA139); i.e. the final tonnage tax accounting period.

No relief, deduction or set-off of any description is allowed against those profits or the corporation tax on them (PARA139 (5)).

References

FA00/SCH22/PARA139 (exit charge: balancing charges)	TTM17771
Exit charge: General	TTM14200