TTM07200 - The ring fence: Reliefs and deductions
No deduction from tonnage tax profits
No relief, deduction or set-off of any description is allowed against a company's tonnage tax profits.
For example, no deduction may be made for:
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- losses arising in the shipping trade before entry to tonnage tax
- losses arising from a non-tonnage tax trade
- group relief surrendered by other group members
- interest paid.
See TTM07220Â for the treatment of losses that accrued before entry into tonnage tax.
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Reliefs and deductions may be set off in the normal way against any profits of the tonnage tax company which fall outside the ring fence.
References
| FA00/SCH22/PARA55 (general exclusion of reliefs) | TTM17316 |
| Deduction for tax liability | TTM07210 |