TTM03905 - Qualifying companies and ships: Flagging - excepted years
FA00/SCH22/PARA22B (2) and FA00/SCH22/PARA22C
These EU/EEA ‘flagging’ rules were repealed by FA22/S25 (6) and (7) with effect from 1 April 2022
The test for whether or not the overall proportion of ships in tonnage tax registered in member states has increased or not is based upon the average over a rolling three year period. HMRC calculate the proportion based upon the gross registered tonnage of ships in tonnage tax at 1 October, based upon returns made to the Department for Transport.
If the proportion has not decreased on average over a three year period, then the Treasury may make an order so that a Financial Year is an ‘excepted’ year.
Where an order is made, the detailed legislation at FA00/Sch22/Para22A does not apply and when an individual company or group starts to operate a new vessel then where that ship is registered does not affect whether or not it is a qualifying vessel for tonnage tax purposes.
The financial years 2005, 2006, 2007, 2018 and 2019 are excepted years.
For guidance on relevant registers see TTM03945.
References
FA00/SCH22/PARA22B | TTM17131 |
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FA00/SCH22/PARA22C | TTM17136 |