Following changes to the tonnage tax regime made by FA 2022 s 25 with effect from 1 April 2022, the Treasury is giving existing shipping companies and groups an opportunity to opt into the revised regime for an 18-month period. The Tonnage Tax (Further Opportunity for Election) Order, SI 2023/508, will enable companies and groups operating qualifying ships and meeting the other conditions of the tonnage tax regime to elect into tonnage tax during the period beginning on 1 June 2023 and ending on 30 November 2024.
Elections into tonnage tax are usually only available for 12 months from the date a company first qualifies for the regime – an intentional safeguard when the regime was introduced, to prevent companies from switching between the tonnage tax and normal corporation tax rules. This temporary change allows existing companies to weigh up whether or not they would benefit from electing into the regime following the FA 2022 revisions.
Following changes to the tonnage tax regime made by FA 2022 s 25 with effect from 1 April 2022, the Treasury is giving existing shipping companies and groups an opportunity to opt into the revised regime for an 18-month period. The Tonnage Tax (Further Opportunity for Election) Order, SI 2023/508, will enable companies and groups operating qualifying ships and meeting the other conditions of the tonnage tax regime to elect into tonnage tax during the period beginning on 1 June 2023 and ending on 30 November 2024.
Elections into tonnage tax are usually only available for 12 months from the date a company first qualifies for the regime – an intentional safeguard when the regime was introduced, to prevent companies from switching between the tonnage tax and normal corporation tax rules. This temporary change allows existing companies to weigh up whether or not they would benefit from electing into the regime following the FA 2022 revisions.
