While a company is subject to tonnage tax, if:

an asset begins to be used for non-tonnage tax purposes; and

it was acquired before the company was within tonnage tax,

then the normal disposal value rules in CAA 2001, s. 61(1)(e) are to be followed (FA 2000, Sch. 22, para. 75(2)).

This is subject to the rules in FA 2000, Sch. 22, para. 77–81.

While a company is subject to tonnage tax, if:

an asset begins to be used for non-tonnage tax purposes; and

it was acquired after the company’s entry into tonnage tax,

then the company is deemed to incur expenditure on the asset equal to the lower of:

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