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HMRC internal manual

Tonnage Tax Manual

Tonnage Tax Regulations 2000: Regulation 2


SI00/2303/REG2(1) In these Regulations –

“corporate partner” means a company which carries on activities in partnership;

“the 1990 Act” means the Capital Allowances Act 1990;

“the paragraph 85(2)(a) amount”, in relation to an asset, means the amount determined under paragraph 85(2)(a) of Schedule 22 for that asset, subject to regulation 8(2)(a), and “the paragraph 112(2) amount” and “the paragraph 113(2) amount” shall have corresponding meanings;

“qualifying expenditure” has the meaning in paragraph 135 of Schedule 22;

“Schedule 22” means Schedule 22 to the Finance Act 2000;

“Schedule 28AA” means Schedule 28AA to the Taxes Act;

“the 75% limit” has the meaning given in paragraph 37(4) of Schedule 22;

“the Taxes Act” means the Income and Corporation Taxes Act 1988.
(2) In these Regulations, the following expressions have the same meaning as in Schedule 22 –

“bareboat charter terms”


“core qualifying activities”

“group” (and “member” of a group)

“leaving tonnage tax”

“operating (a ship)”

“qualifying company”

“qualifying ship”

“relevant shipping profits”


“ship-related activities”

“subject to tonnage tax”

“tonnage tax company”

“tonnage tax group” (and “member” of such a group)

“tonnage tax profits”

“tonnage tax trade”.
(3) References in regulation 3(3)(a) to (j) and (4) to a qualifying ship operated by a company, where the company is a member of a tonnage tax group, include references to a qualifying ship operated by another qualifying company in the same tonnage tax group.

(4) For the purposes of the definition of “arm’s length provision” (regulation 3(3)(a)(ii)), where any provision is made or imposed as between a company’s tonnage tax trade and other activities carried on by it, the assumptions in paragraph 59(1)(a) to (c) of Schedule 22 and paragraph 1(3) of Schedule 28AA shall apply.


Qualifying secondary activities TTM06100