TTM12360 - Tonnage Tax Groups: Merger

Meaning of 'relevant activities'

‘Relevant activities’ are defined by paragraph 126(3) according to the status of the merging groups or companies. The varying status is defined as follows:

Merger between T and T, or T and QNT

For a merger between T and T or T and QNT the ‘relevant activities’ are the tonnage tax activities (T) or what would be tonnage tax activities (QNT) (paragraph 126(3)(a)).

Merger between NQ and QNT

For a merger between NQ and QNT the ‘relevant activities’ are all the activities of each party (paragraph 126(3)(b)).

Measurement of ‘relevant activities’

You should seek to agree with the new group the basis on which and periods by reference to which the turnover from relevant activities is calculated. Where agreement cannot be reached you should decide and notify the group in writing of the decision (paragraph 126(4) and (5)).

Appeal where disagreement

A company that disagrees with HMRC’s decision can appeal to have the decision reviewed internally, or appeal to have the decision heard by the Upper Tribunal. The appeal should be made within 30 days of the decision being notified (paragraph 126(5) and (6)). If the company seeks an internal review, and does not agree with the decision of that review, it can then appeal to the Upper Tribunal.

References