Anti-avoidance provisions


Appeals against exclusions

Associate, meaning

Avoidance of tax, requirement not to enter in

Bareboat charter terms, meaning

Capital allowances, ring fencing of

Disposal of plant and machinery, lessor companies

Effect of lessee's joining the regime

Effect of lessee's leaving the regime


Industrial buildings

Lessors: complete denial

Lessors: generally

Lessors: long funding leases

Lessors: quantitative restriction

Offshore activities

Plant and machinery allowances

Sales of lessors

Ship leasing

Transfer of trade

Chargeable gains and allowable losses

Disposal of tonnage tax asset

Losses brought forward

Offshore activities

Roll-over relief for business assets

Tonnage tax assets

Chargeable gains/allowable losses

Assets qualifying for special treatment

Capital losses brought forward

Effect of ring fence

Exit charge


Roll-over relief

Chartered-in, 75 per cent test

Community flagging rules

Compliance with standards


Controlled foreign companies

Controlled foreign companies profits


Definitions and terms



Ceasing to be in force

Clearance procedures

Company or group

Further period for making


Initial period

Method of making

Period for which election in force

Period in force

Person by whom election to be made

Power to provide further opportunities



Taking effect

Ten-year period


When election may be made

When election takes effect

Withdrawal notices

Environmental performance standards, compliance with

Exit charge

Balancing charges

Chargeable gains

Finance costs

Group company

Long funding operating lease


Single company

Finance leases

Financial year


Flagging rules


Member states registers, meaning

Qualifying dredgers and tugs

Ships other than dredgers and tugs

Subsequent re-flagging of qualifying dredgers or tugs

General operation



Groups of companies

Arrangements for dealing with group matters



Mergers and demergers

Treatment as member of more than one group

Health and safety standards, compliance with

Industrial buildings allowances

Balancing charges

Mixed use

Industrial buildings rules

Leasing ships

Leasing ships, capital allowances

Certificates required to support claim by finance lessor

Defeased leasing

Determination of tax written down value etc.

Exception for ordinary charters

Finance leases


Long funding leases

Quantative restrictions

Sale and lease-back arrangements

Lessor companies

Disposal of plant and machinery

Sales of

Transfer of trade

Loss relief

Machinery and plant allowances

Adjustments to amount of qualifying expenditure where corporate partner leaves tonnage tax

Asset beginning to be used for tonnage tax trade

Balancing charge, giving effect to

Change of use of non-tonnage tax asset

Change of use of tonnage tax asset

Defeased leasing

Deferment of balancing charge



Exit from tonnage tax

Expensive motor cars, writing-down basis



Long-life assets, writing-down basis

New expenditure partly for tonnage tax purposes

Not entitled, meaning

Offshore activities

Partly used assets

Pre-entry period, limit

Reduction of balancing charges

Surrender of unrelieved qualifying expenditure

Wholly used assets

Writing-down allowances

Measurement of tonnage of ship


Mergers and demergers, meaning

Offshore activities

Capital allowances

Chargeable gains

Computation of profits

De minimis offshore use ignored

Effect of rules

Excluded activities

Excluded ships (pre-30 June 2005)



Periods of inactivity

Ring fence provisions

Ships not being used

Training requirement

Training requirement, effect

UK sector of the continental shelf


Calculation of 75 per cent limit

Calculation of profits

Capital allowances, adjustments for

Chargeable gains/allowable losses


Operation of qualifying ships

Partner leaving tonnage tax, capital allowances

Qualifying partnerships

Ships owned by or chartered to

Training costs in respect of offshore use

Transactions not at arm's length

Transfer pricing

Payments in lieu of training

Calculation and payment

Calculation by Secretary of State



Information required

Plant and machinery allowances

Change of use of an asset


Entry into tonnage tax

Ships on entry into tonnage tax

Surrender of unrelieved qualifying expenditure between group members

Prescribed and specified

Qualifying companies and groups

75 per cent limit of fleet tonnage

Change of use of ship


Operating a ship, meaning

Qualifying company, meaning

Qualifying dredgers and tugs

Qualifying group, meaning

Qualifying ship, meaning

Qualifying ships

Strategic and commercial management test

Temporarily ceasing to operate qualifying ships

Temporary cessation of operating a qualifying ship

Transitional provisions

Vessels excluded from qualifying ships

Qualifying secondary activities

Qualifying ships

Change of use, effect of

Community flagged

Dredgers and tugs

Excluded vessels


Temporarily ceasing to operate

Registration in Member States (flagging)

Relevant shipping profits

Cable layers

Core qualifying activities

Crane barges

Distributions from overseas shipping companies

Diving support vessels

Excluded profits


Interest treated as

Investment income exclusion

Investment income, general exclusion

Merchant adventurers


Pooled liner services

Qualifying incidental activities

Qualifying secondary activities

Relevant shipping income

Sale of luxury goods

Slot charters

Specialist ships

Survey ships

Tonnage tax activities

Ring fence

Accounting period

Cessation of accounting period

Chargeable gains/allowable losses, effect on

Controlled foreign companies

Controlled foreign companies, profits

Exclusion of reliefs, deductions and set-offs

Finance costs

Loss relief

Loss relief exclusion

No reliefs, deductions and set-offs

Separate trade

Set-off against tax liability, exclusion of relief

Tax liability, exclusion of relief or set-off

Tonnage tax trade

Transfer pricing

Safety etc. standards, compliance with

Safety standards, compliance with

Sale of lessor company, company joining tonnage tax group

Sales of lessor companies

Ship, meaning

Statutory provisions

Summary of rules

Tonnage tax company, meaning

Tonnage tax group

Tonnage tax profits

Calculation in case of joint operations


Method of calculation

Trading income

Training requirement

Annual training commitment

Approval of initial training commitment


Certificate of non-compliance

Disclosure of information

Eligible officer trainees

End of period adjustment

Higher rate of payment in case of failure to meet

Minimum obligation

Monitoring compliance


Offshore activities

Payments in lieu of training


Supplementary provisions

Training commitment

Training requirements

Approval of training commitments

Basic rules

Calculating number of officers required

Contents of training commitments

Criminal offences

End-of-period adjustments

Feasibility of adopting options

Information exchange

Initial and annual training commitments

Minimum training obligation

Non-compliance certificates

Offshore activities

Partnerships, offshore activities

Payments in lieu of training

Penalties for failure to meet requirements

Transfer pricing



Ring fence

Transfers of trade and lessor companies

Transfers of trades

Withdrawal notices

Withdrawal of relief etc. company leaving tonnage tax

Exit charge


Withdrawal of relief, company ceasing to be tonnage tax company

Exit charge, balancing charges

Exit charge, chargeable gains

Ten-year disqualification period from re-entry

Working conditions, compliance with standards