# Finance Act 2000, Paragraph 41

Extent: E+W+S+N.I.

(1) It is a condition of remaining within tonnage tax that a company is not a party to any transaction or arrangement that is an abuse of the tonnage tax regime.
(2) A transaction or arrangement is such an abuse if in consequence of its being, or having been, entered into the provisions of this Schedule fall to be applied in a way that results (or would but for this paragraph result) in—
(a) a tax advantage being obtained for—
(i) a company other than a tonnage tax company, or
(ii) a tonnage tax company in respect of its non-tonnage tax activities,
or
(b) the amount of the tonnage tax profits of a tonnage tax company being artificially reduced.
(3) In this paragraph “tax advantage” has the meaning given by section 840ZA of the Taxes Act 1988.
(4) A ... lease is not to be taken as being an abuse of the tonnage tax regime by reason of the lessor obtaining capital allowances as a result of the lease being, or having been, entered into.
In this sub-paragraph “lease”, and “lessor” in relation to a lease, have the meaning given by paragraph 89(2).

---
Source: https://www.legislation.gov.uk/ukpga/2000/17/schedule/22/paragraph/41 (the official version)
Page: https://openlegislation.uk/finance-act-2000/schedule-22/paragraph-41
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.