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HMRC internal manual

Tonnage Tax Manual

From
HM Revenue & Customs
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Schedule 22 Finance Act 2000: Part I introductory - Para 4 Tonnage Tax profits - method of calculation

FA00/SCH22/PARA4

(1) A company’s tonnage tax profits for an accounting period are calculated in accordance with this paragraph by reference to the net tonnage of the qualifying ships operated by the company.

For the purposes of the calculation the net tonnage of a ship is rounded down (if necessary) to the nearest multiple of 100 tons.

(2) The calculation is as follows:

Step One

Determine the daily profit for each qualifying ship operated by the company by reference to the following table and the net tonnage of the ship:
 

For each 100 tons up to 1,000 tons £0.60
   
For each 100 tons between 1,000 and 10,000 tons £0.45
For each 100 tons between 10,000 and 25,000 tons £0.30
For each 100 tons above 25,000 tons £0.15

Step Two

Work out the ship’s profit for the accounting period by multiplying the daily profit by-

(a) the number of days in the accounting period, or

(b) if the ship was operated by the company as a qualifying ship for only part of the period, by the number of days in that part.

Step Three

Follow Steps One and Two for each of the qualifying ships operated by the company in the accounting period.

Step Four

Add together the resulting amounts and the total is the amount of the company’s tonnage tax profits for that accounting period.

References

Method of calculation TTM01300