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Ten year disqualification

No re-entry into tonnage tax for ten years

For all cases, except on expiry of an election, there is a ten year disqualification from re-entry into tonnage tax under FA00/SCH22/PARA137 (3).Ìý »Ê¹ÚÌåÓýapp ten years will run from the first day after leaving tonnage tax.Ìý If a further window of opportunity were offered for entry into the regime, a company could still not re-enter if any part of its first accounting period following re-entry into tonnage tax would fall within the ten year disqualification period.

Exception to ten year disqualification rule

»Ê¹ÚÌåÓýapp only exception to this rule is where, under the merger rules, either:

• an ex-tonnage tax group or company were taken over by a tonnage tax group or company which was the ‘dominant partyâ€� or, there being no dominant party, which could elect to be so (FA00/SCH22/PARA123), or
• an ex-tonnage tax group or company were taken over by a non-qualifying group or company which was the ‘dominant partyâ€� (PARA125).

In those limited circumstances an ex-tonnage tax company can re-enter tonnage tax before the expiry of its ten year disqualification period.
Ìý

»Ê¹ÚÌåÓýapp ten year disqualificationv period does not apply to a company which remains in a group which continues to be a tonnage tax group because at least one other company in the group is a tonnage tax company, see TTM14030.

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