TTM14220 - Exiting Tonnage Tax: Effects of exiting Tonnage Tax regime

Exit charge: Balancing charges

Where:

• for an accounting period ending not more than six years before the day on which the company ceased to be a tonnage tax company,
• a balancing charge has been wholly or partially reduced by the balancing charge phase-out relief in paragraph 78,

then the total of all such reductions is assessed as additional profits chargeable to corporation tax immediately before it ceased to be a tonnage tax company (paragraph 139); i.e. the final tonnage tax accounting period.

No relief, deduction or set-off of any description is allowed against those profits or the corporation tax on them (paragraph 139(5)).

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