TTM14001 - Exiting Tonnage Tax: Types of exit

Voluntary exits

Voluntary exits from the Tonnage Tax regime may be for three possible reasons:

• Expiry of election (paragraph 13(1); see TTM14010), or
• A withdrawal notice takes effect under paragraph 15A;see TTM14080, or
• Ceasing to be a qualifying company or group (paragraph 16; see TTM14020), or
• Operation of the merger provisions (where no dominant party: paragraph 123(4); see TTM14040).

Forced exits

Forced exits from the Tonnage Tax regime may be for three possible reasons:

• Operation of the merger provisions (where QNT is dominant party: paragraph 123(3); see TTM14050), or
• Exclusion for failing to meet 75% test on charters-in (paragraphs 39 & 40; see TTM14060), or
• Exclusion for tax avoidance (paragraph 42; see TTM14070).

Exit charges

Only where the exit is for reasons relating wholly or mainly to tax, or there is expulsion for tax avoidance, is there a specific exit charge under paragraph 137 onwards; see TTM14200.

References