Draft legislation (accessible version)
Updated 22 November 2023
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1. Tonnage tax on managing ships
Schedule 1 amends Schedule 22 to FA 2000 to make provision to enable companies, and groups of companies, that manage qualifying ships to make a tonnage tax election (so that their profits for the purposes of corporation tax are calculated in accordance with the tonnage tax regime).
2. Increase in capital allowances limit for ship leasing
(1) Paragraph 94 of Schedule 22 to FA 2000 (tonnage tax: restrictions on capital allowances) is amended as follows.
(2) In sub-paragraph (3), for 바카라 사이트溌�40 million바카라 사이트�, in both places it occurs, substitute 바카라 사이트溌�100 million바카라 사이트�.
(3) In sub-paragraph (5), for 바카라 사이트溌�80 million바카라 사이트� substitute 바카라 사이트溌�200 million바카라 사이트�.
(4) The amendments made by subsections (2) and (3) have effect in relation to leases entered into on or after 1 April 2024.
SCHEDULE 1
TONNAGE TAX
Introduction
1.\ Schedule 22 to FA 2000 (tonnage tax) is amended as follows. Qualifying companies to include companies managing qualifying ships
2.\ (1) In paragraph 16 (qualifying companies and groups), in sub-paragraph (1)(b), after 바카라 사이트渙perates바카라 사이트� insert 바카라 사이트渙r manages바카라 사이트�.
(2) After paragraph 18 insert바카라 사이트�
바카라 사이트淢eaning of managing a qualifying ship
18A A company is regarded for the purposes of this Schedule as managing a qualifying ship if바카라 사이트�
(a) the ship is a qualifying ship operated by a tonnage tax company (바카라 사이트渢he operator바카라 사이트�),
(b) the company carries on activities in relation to the ship that would be tonnage tax activities of the operator if the operator carried them on, and
(c) those activities as carried on by the company represent a significant contribution to the operation of the ship.바카라 사이트�
Daily profits of managed ships
3.\ (1) Paragraph 4 (tonnage tax profits: method of calculation) is amended as follows.
(2) In sub-paragraph (1), after 바카라 사이트渙perated바카라 사이트� insert 바카라 사이트渙r managed바카라 사이트�.
(3) In sub-paragraph (2), for Step One substitute바카라 사이트�
바카라 사이트淪tep One
Determine the daily profit for each qualifying ship operated by the company and each qualifying ship managed by the company by reference to the following table and the net tonnage of the ship바카라 사이트�
| Net tonnage | Daily Profit | Daily Profit |
|---|---|---|
| 聽 | Managed ship | Operated ship |
| For each 100 tons up to 1,000 tons | 拢0.60 | 拢0.12 |
| For each 100 tons between 1,000 and 10,000 tons | 拢0.45 | 拢0.09 |
| For each 100 tons between 10,000 and 25,000 tons | 拢0.30 | 拢0.06 |
| For each 100 tons above 25,000 tons | 拢0.15 | 拢0.03바카라 사이트�. |
Tonnage tax activities include activities in managing ships
4. In paragraph 46 (core qualifying activities)바카라 사이트�
(a) in sub-paragraph (1)바카라 사이트�
(i) in paragraph (a), after 바카라 사이트渙perating바카라 사이트� insert 바카라 사이트渙r managing바카라 사이트�, and
(ii) in paragraph (b), after 바카라 사이트渙perating바카라 사이트� insert 바카라 사이트渙r managing바카라 사이트�, and
(b) after sub-paragraph (2) insert바카라 사이트�
바카라 사이트�(3) A company바카라 사이트檚 activities in managing qualifying ships means its participation in the activities mentioned in that paragraph by virtue of which the ship is a qualifying ship.바카라 사이트�
Effect of temporarily ceasing to manage or operate qualifying ships
5. In paragraph 17 (effect of temporarily ceasing to operate qualifying ships)바카라 사이트�
(a) in sub-paragraph (1) after 바카라 사이트渙perate바카라 사이트�, in both places it occurs, insert 바카라 사이트渙r manage바카라 사이트�,
(b) in sub-paragraph (2), in paragraph (a), after 바카라 사이트渙perating바카라 사이트� insert 바카라 사이트渙r managing바카라 사이트�,
(c) in that sub-paragraph, in the words after paragraph (b)바카라 사이트�
(i) after 바카라 사이트渙perate바카라 사이트� insert 바카라 사이트渙r manage바카라 사이트�,
(ii) after 바카라 사이트渙perated바카라 사이트� insert 바카라 사이트渙r managed바카라 사이트�, and
(d) in sub-paragraph (4)바카라 사이트�
(i) in paragraph (a), after 바카라 사이트渙perating바카라 사이트� insert 바카라 사이트渙r managing바카라 사이트�, and
(ii) in paragraph (b), after 바카라 사이트渙perates바카라 사이트� insert 바카라 사이트渙r manages바카라 사이트�.
Training requirement
6. In paragraph 23 (the training requirement), after sub-paragraph (2) insert바카라 사이트�
바카라 사이트�(3) The condition mentioned in sub-paragraph (1) does not apply to바카라 사이트�
(a) a company that does not operate any qualifying ships, or
(b) a group that does not have any members that operate one or more qualifying ships.바카라 사이트�
Disapplication of 75% limit for ship managers
7. (1) In paragraph 37 (75% charter limit)바카라 사이트�
(a) in sub-paragraph (1), in the words before paragraph (a), after 바카라 사이트渙f바카라 사이트� insert 바카라 사이트渁 relevant company or group바카라 사이트�, and
(b) after sub-paragraph (5) insert바카라 사이트�
바카라 사이트�(6) For the purposes of sub-paragraph (1)바카라 사이트�
(a) a company is 바카라 사이트渞elevant바카라 사이트� if it operates one or more qualifying ships, and
(b) a group is 바카라 사이트渞elevant바카라 사이트� if it has one or more members that operate one or more qualifying ships.바카라 사이트�
(2) In paragraph 49 (distributions of oversea shipping companies), in sub-paragraph (2), in paragraph (c), after 바카라 사이트渢hat바카라 사이트� insert 바카라 사이트�, where the overseas company operates qualifying ships,바카라 사이트�.
Commencement
8. The amendments made by this Schedule have effect in relation to tonnage tax elections made on or after 1 April 2024.