Paragraph 140

(1)

A company election made by a former tonnage tax company is ineffective if made before the end of the period of ten years beginning with the date on which the company ceased to be a tonnage tax company.

(2)

A group election that—

(a)

is made in respect of a group whose members include a former tonnage tax company, and

(b)

would result in that company becoming a tonnage tax company,

is ineffective if made before the end of the period of ten years beginning with the date on which that company ceased to be a tonnage tax company.

(3)

Sub-paragraphs (1) and (2) do not prevent a company becoming a tonnage tax company under and in accordance with the rules in Part XII of this Schedule (groups, mergers and related matters).

(4)

In this paragraph “former tonnage tax company” means a company that is not a tonnage tax company but has previously been a tonnage tax company.