TTM17000 - Schedule 22 Finance Act 2000: Contents

Table of contents - FA00/SCH22

Part I Introductory

Part II Tonnage tax elections

Part III Qualifying companies and groups

Part IV The training requirement

Part V Other requirements - The 75% limit : Not to enter into Tax avoidance

Part VI Relevant shipping profits

Part VII The ring fence: general provisions

Part VIII Chargeable gains and allowable losses on tonnage tax assets

Part IX The ring fence: capital allowances: general

Part X The ring fence: capital allowances: ship leasing

Part XI Special rules for offshore activities

Part XII Groups, mergers and related matters

Part XIII Application of provisions to partnerships

Part XIV Withdrawal of relief etc. On company leaving tonnage tax

Part XV Supplementary provisions

Top of page

Part I Introductory

TTM17001

para 1

Tonnage tax

TTM17006

para 2

Tonnage tax companies and groups

TTM17011

para 3

Profits of tonnage tax company

TTM17016

para 4

Tonnage tax profits: method of calculation

TTM17021

para 5

Tonnage tax profits: calculation in case of joint operation etc

TTM17026

para 6

Measurement of tonnage of ship

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Part II Tonnage tax elections

TTM17031

para 7

Company or group election

TTM17036

para 8

Method of making election

TTM17041

para 9

Person by whom election to be made

TTM17046

para 10

When election may be made

TTM17051

para 11

Power to provide further opportunities for election

TTM17056

para 12

When election takes effect

TTM17061

para 13

Period for which election in force

TTM17066

para 14

Effect of election ceasing to be in force

TTM17071

para 15

Renewal election

TTM17076

para 15A

Withdrawal notices

TTM17081

para 15B

Power to provide further opportunities for withdrawal

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Part III Qualifying companies and groups

TTM17086

para 16

Qualifying companies and groups

TTM17091

para 17

Effect of temporarily ceasing to operate qualifying ships

TTM17096

para 18

Meaning of operating a ship

TTM17101

para 19

Qualifying ships

TTM17106

para 20

Vessels excluded from being qualifying ships

TTM17111

Para 20A

Qualifying dredgers and tugs

TTM17116

para 21

Power to exclude other kinds of vessel

TTM17121

para 22

Effect of change of use

TTM17126

para 22A

Rule for ships other than dredgers and tugs

TTM17131

para 22B

Meaning of terms used in paragraph 22A

TTM17136

para 22C

Provisions supplementing paragraphs 22A and 22B

TTM17141

Para 22D

Rule on first operation of qualifying dredger or tug

TTM17146

Para 22E

Rule on subsequent re-flagging of qualifying dredger or tug

TTM17151

Para 22F

Restrictions where dredger or tug ceases to be qualifying ship

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Part IV The training requirement

TTM17156

para 23

Introduction

TTM17161

para 24

The minimum training obligation

TTM17166

para 25

Meaning of "training commitment"

TTM17171

para 26

Approval of initial training commitment

TTM17176

para 27

Annual training commitment

TTM17181

para 28

Supplementary provisions about training commitments

TTM17186

para 29

Payments in lieu of training

TTM17191

para 30

Monitoring of compliance with training commitment

TTM17196

para 31

Higher rate of payment in case of failure to meet training commitment

TTM17201

para 32

Certificate of non-compliance

TTM17206

para 33

Certificates of non-compliance: supplementary provisions

TTM17211

para 34

Disclosure of information

TTM17216

para 35

Offences

TTM17221

para 36

General provisions about regulations

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Part V Other requirements - The 75% limit : Not to enter into Tax avoidance

TTM17226

para 37

The requirement that not more than 75% of fleet tonnage is chartered in

TTM17231

para 38

The 75% limit: election not effective if limit exceeded

TTM17236

para 39

The 75% limit: exclusion of company if limit exceeded

TTM17241

para 40

The 75% limit: exclusion of group if limit exceeded

TTM17246

para 41

The requirement not to enter into tax avoidance arrangements

TTM17251

para 42

Tax avoidance: exclusion from tonnage tax

TTM17256

para 43

Appeals

TTM17258

Para 43A

Compliance with safety standards

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Part VI Relevant shipping profits

TTM17261

para 44

Introduction

TTM17266

para 45

Tonnage tax activities

TTM17271

para 46

Core qualifying activities

TTM17276

para 47

Qualifying secondary activities

TTM17281

para 48

Qualifying incidental activities

TTM17286

para 49

Relevant shipping income: distributions of overseas shipping companies

TTM17291

para 50

Relevant shipping income: certain interest etc

TTM17296

para 51

General exclusion of investment income

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Part VII The ring fence: general provisions

TTM17301

para 52

Accounting period ends on entry or exit

TTM17306

para 53

Tonnage tax trade

TTM17311

para 54

Profits of controlled foreign companies

TTM17316

para 55

General exclusion of reliefs, deductions and set-offs

TTM17321

para 56

Exclusion of loss relief

TTM17326

para 57

Exclusion of relief or set-off against tax liability

TTM17331

para 58

Transactions not at arm's length: between tonnage tax company and another person

TTM17336

para 59

Transactions not at arm's length: between tonnage tax trade and other activities of same company

TTM17341

para 60

Transactions not at arm's length: duty to give notice

TTM17346

para 61

Treatment of finance costs: single company

TTM17351

para 62

Treatment of finance costs: group company

TTM17356

para 63

Meaning of "finance costs"

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Part VIII Chargeable gains and allowable losses on tonnage tax assets

TTM17361

para 64

Chargeable gains: tonnage tax assets

TTM17366

para 65

Chargeable gains: disposal of tonnage tax asset

TTM17371

para 66

Chargeable gains: losses brought forward

TTM17376

para 67

Chargeable gains: roll-over relief for business assets

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Part IX The ring fence: capital allowances: general

TTM17381

para 68

Introduction

TTM17386

para 69

Entry: plant and machinery: assets to be used wholly for tonnage tax trade

TTM17391

para 70

Entry: plant and machinery: assets to be used partly for tonnage tax trade

TTM17396

para 71

Entry: ships acquired and disposed of within twelve months

TTM17401

para 72

Entry: deferred balancing charge on disposal of ship

TTM17406

para 73

During: plant and machinery: new expenditure partly for tonnage tax purposes

TTM17411

para 74

During: plant and machinery: asset beginning to be used for tonnage tax trade

TTM17416

para 75

During: plant and machinery: change of use of tonnage tax asset

TTM17421

para 76

During: plant and machinery: change of use of non-tonnage tax asset

TTM17426

para 77

During: plant and machinery: disposals

TTM17431

para 78

During: plant and machinery: reduction of balancing charges

TTM17436

para 79

During: plant and machinery: giving effect to balancing charge

TTM17441

para 80

During: plant and machinery: deferment of balancing charge

TTM17446

para 81

During: plant and machinery: surrender of unrelieved qualifying expenditure

TTM17451

para 82

During: industrial buildings: mixed use

TTM17456

para 83

During: industrial buildings: balancing charges

TTM17461

para 84

During: industrial buildings: residue of qualifying expenditure

TTM17466

para 85

Exit: plant and machinery

TTM17471

para 86

Exit: industrial buildings

TTM17476

para 87

Meaning of "not entitled to capital allowances"

TTM17481

para 88

Interpretation

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Part X The ring fence: capital allowances: ship leasing

TTM17486

para 89

Introduction

TTM17491

Para89A

Quantitative restrictions not to apply to ordinary charters

TTM17496

para 90

Defeased leasing

TTM17501

para 91

Defeased leasing: excepted forms of security

TTM17506

para 91A

Long funding leases; conditions for alternative treatment

TTM17511

para 91B

Lease to tonnage tax company or group

TTM17516

para 91C

Tonnage tax company to operate qualifying ship

TTM17521

para 91D

Period and rate of sublease of qualifying ship

TTM17526

para 91E

Anti-avoidance

TTM17531

para 91F

Consequences of paragraph 91A(2) ceasing to have effect

TTM17536

para 92

Sale and lease-back arrangements

TTM17541

para 93

Certificates required to support claim by finance lessor

TTM17546

para 94

Quantitative restrictions on allowances

TTM17551

para 95

Quantitative restrictions: further provisions as to rate bands, limit and pooling

TTM17556

para 96

Quantitative restrictions: meaning of "cost of providing ship"

TTM17561

para 97

Quantitative restrictions: treatment of disposal proceeds

TTM17566

para 98

Quantitative restrictions: change of circumstances bringing case within restrictions

TTM17571

para 99

Quantitative restrictions: change of circumstances taking case out of restrictions

TTM17576

para 100

Determination of tax written down value, etc

TTM17581

para 101

Quantitative restrictions: power to alter amounts by regulations

TTM17586

para 102

Exclusion of leases entered into on or before 23 December 1999

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Part XI Special rules for offshore activities

TTM17591

para 103

Introduction

TTM17596

para 104

Meaning of "offshore activities"

TTM17601

para 105

Vessels to which special provisions do not apply

TTM17606

para 106

Treatment of periods of inactivity

TTM17611

para 107

Profits from offshore activities to be computed according to ordinary rules

TTM17616

para 108

Application of ring fence provisions

TTM17621

para 109

Chargeable gains from assets used for offshore activities

TTM17626

para 110

Capital allowances: general

TTM17631

para 111

Capital allowances: proportionate reduction of allowances

TTM17636

para 112

Capital allowances: notional qualifying expenditure: existing assets

TTM17641

para 113

Capital allowances: notional qualifying expenditure: new assets

TTM17646

para 114

The training requirement

TTM17651

para 115

Interpretation

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Part XII Groups, mergers and related matters

TTM17656

para 116

Meaning of "group" and "member of group"

TTM17661

para 117

Companies treated as controlled by an individual

TTM17666

para 118

Meaning of "control"

TTM17671

para 119

Company not to be treated as member of more than one group

TTM17676

para 120

Arrangements for dealing with group matters

TTM17681

para 121

Meaning of "merger" and "demerger"

TTM17686

para 122

Merger: between tonnage tax groups or companies

TTM17691

para 123

Merger: tonnage tax group or company and qualifying non-tonnage tax group or company

TTM17696

para 124

Merger: tonnage tax group or company and non-qualifying group or company

TTM17701

para 125

Merger: non-qualifying group or company and qualifying non-tonnage tax group or company

TTM17706

para 126

Meaning of "dominant party" in relation to merger

TTM17711

para 127

Demerger: single company

TTM17716

para 128

Demerger: group

TTM17721

para 129

Duty to notify Inland Revenue of group changes

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Part XIII Application of provisions to partnerships

TTM17726

para 130

Introduction

TTM17731

para 131

Calculation of partnership profits

TTM17736

para 132

Qualifying partnerships

TTM17741

para 133

Ships owned by or chartered to partners

TTM17746

para 134

Transactions not at arm's length

TTM17751

para 135

Adjustments for capital allowance purposes

TTM17756

para 136

General

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Part XIV Withdrawal of relief etc. On company leaving tonnage tax

TTM17761

para 137

Introduction

TTM17766

para 138

Exit charge: chargeable gains

TTM17771

para 139

Exit charge: balancing charges

TTM17776

para 140

Ten year disqualification from re-entry into tonnage tax

TTM17781

para 141

Second or subsequent application of this Part

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Part XV Supplementary provisions

TTM17786

para 142

Meaning of "ship"

TTM17791

para 143

Meaning of "on bareboat charter terms"

TTM17796

para 144

Meaning of "associate"

TTM17801

para 145

Exercise of functions conferred on "the Inland Revenue"

TTM17806

para 146

Meaning of "company" and related expressions

TTM17811

para 147

Index of defined expressions