To remain within tonnage tax, a company must not enter into any transaction or arrangement that abuses its position within tonnage tax. Transactions and arrangements covered are those entered into such that the tonnage tax rules give (or would give):

a tax advantage (as defined in ICTA 1988, s. 840ZA) in respect of any company's non-tonnage tax activities; or

an artificial reduction in a company's tonnage tax profits (FA 2000, Sch. 22, para. 41 ).

SP 4/00 provides three examples of such abuse:

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.