Tonnage Tax

Earlier this year, following discussions with the European Commission, HMRC published a Technical Note containing draft legislation amending the UK Tonnage Tax regime. Since then, the European Commission has written to Member States seeking views about some issues relating to tonnage tax schemes. In the light of this development, the Government has decided to defer the legislation, so it will not be included in this year’s Finance Bill. The Technical Note has therefore been withdrawn.

The Government will review the position once the Commission has announced the outcome of its consultations with Member States, and will consider what changes are required to the tonnage tax scheme to ensure it continues to comply with the State aids rules.

HMRC is publishing its draft guidance on the application of the flagging legislation(PDF 61K).

Where companies in Tonnage Tax or their agents have any comments on the draft guidance, for example where they consider that an aspect has not been covered by the guidance, then they should contact:

Nick Gibb
Liverpool LBS
Regian House
James St
Liverpool
Merseyside
L75 1AA

email: Nick Gibb

Comments should be made by 30 April 2008.