# Finance Act 2000, Paragraph 49


(1) Income of a tonnage tax company consisting in a dividend or other distribution of an overseas company is relevant shipping income if the following conditions are met.
(2) The conditions are—
(a) that the overseas company operates qualifying ships;
(b) that more than 50% of the voting power in the overseas company is held by a company resident in a the United Kingdom ..., or that two or more companies each of which is resident in a the United Kingdom ... hold in aggregate more than 50% of that voting power;
(c) that , where the overseas company operates qualifying ships, the 75% limit is not exceeded in relation to the overseas company in any accounting period in respect of which the distribution is paid;
(d) that all the income of the overseas company is such that, if it were a tonnage tax company, it would be relevant shipping income;
(e) that the distribution is paid entirely out of profits arising at a time when—
(i) the conditions in paragraphs (a) to (d) were met, and
(ii) the tonnage tax company was subject to tonnage tax; and
(f) the profits of the overseas company out of which the distribution is paid are subject to a tax on profits (in the country of residence of the company or elsewhere, or partly in that country and partly elsewhere).
(3) For the purposes of sub-paragraph (2)(c) the “75% limit” is the requirement set out in paragraph 37 (requirement that not more than 75% of tonnage is chartered in) as it applies to a single company.
(4) In this paragraph an “overseas company” means a company that is not resident in the United Kingdom.

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Source: https://www.legislation.gov.uk/ukpga/2000/17/schedule/22/paragraph/49 (the official version)
Page: https://openlegislation.uk/finance-act-2000/schedule-22/paragraph-49
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.