The Tonnage Tax Regulations 2000
The Tonnage Tax Regulations 2000 supplement Schedule 22 to the Finance Act 2000 (“Schedule 22”) which introduced an alternative new regime (“tonnage tax”) for calculating the profits of a shipping company for the purposes of corporation tax. The principal effects of these Regulations are (1) to define the activities which are to be regarded as “qualifying secondary activities” (2) to provide for the calculation of the written-down levels of qualifying expenditure for assets which will become subject to the usual capital allowances rules when a company leaves tonnage tax (3) to provide for the calculation of the written-down levels of qualifying expenditure for plant or machinery provided for a company’s offshore activities, when the asset was not brought into use for those purposes immediately on the company’s entry into tonnage tax and (4) to make provision applying Schedule 22 to activities which a company carries on in partnership.