The consequences of leaving the tonnage tax regime are as follows.
•A new accounting period commences on the day following the final day in tonnage tax (expiry of election, ceasing to qualify or as specified in notice) for all previously qualifying tonnage tax companies (FA00/SCH22/PARA52). See TTM07010.
•Trading losses of the trade that became the tonnage tax trade from periods before tonnage tax are not re-instated (PARA56 (1)). See TTM07220.
•Free depreciation (postponed capital allowances) taken into frozen pool is not re-instated (PARA69 (4) and PARA85). See TTM09010.