TTM03925 - Qualifying companies and ships: Flagging - condition 3

FA00/SCH22/PARA22A (4)

These EU/EEA ‘flagging’ rules were repealed by FA22/S25 (6) and (7) with effect from 1 April 2022

Condition 3 compares the proportion of the company’s total tonnage that is flagged on a relevant register (EU/EEA plus UK and Gibraltar) with the proportion that was so flagged at the reference date.

If the percentage in condition 2 (TTM03920) that is flagged on a relevant register is either the same, or has increased since the reference date, then the condition does not apply and where that ship is registered does not affect whether or not it is a qualifying ship for tonnage tax purposes

For a single company the reference date is the later of:

• 17 January 2004 and
• the last day of the accounting period in which the company became a tonnage tax company.

Where the company is a member of a tonnage tax group then the reference date is the later of:

• 17 January 2004 and
• the last day of the accounting period in which the group became a tonnage tax group.

The legislation was amended by SI2020/332 to maintain its effect following departure from the EU/EEA, referring to relevant registers.

References

| FA00/SCH22/PARA22A (4) | TTM17126 | |————————|———————————————————————————-|