TTM06120 - Relevant Shipping Profits: Secondary activities qualifying up to set limits

The secondary activities that qualify up to set limits are described in Regulation 3(4) of the Tonnage Tax Regulations. There are three categories:

• Work carried out for third parties - see TTM06130 
• Betting and Gambling - see TTM06150 
• Sale of Luxury Goods - see TTM06160

Cliff edge

Some of the regulations contain provisions whereby activities are allowed up to a certain limit. Where this limit is breached, then the whole of the profit or loss from that activity will fall outside the tonnage tax ring-fence. However, where the limit is breached to a minimal extent then the Inland Revenue may accept, on de minimis grounds, that no adjustment is required. This relaxation is to apply in exceptional circumstances only and will not apply to habitual breaches.

References