TTM02301 - Tonnage Tax Elections: Example 1

Election in a further window of opportunity.

A singleton company decides it wants to make a tonnage tax election on 30 June 2006. Its accounting date is 31 December each year.

The normal rule is that a company elects in with effect from the beginning of the accounting period during which the election is made, i.e. 1 January 2006; or it can with the inspector’s agreement:

• backdate the election to 1 January 2005
• elect in with effect from the beginning of the accounting period following that during which it made the election, i.e. 1 January 2007; or
• in exceptional circumstances, elect in with effect from the beginning of the accounting period following the one after that during which the election was made, i.e. 1 January 2008.

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