Explanatory note

Schedule 22 of the Finance Act 2000 provides an alternative regime (“tonnage tax”) for calculating the profits of a shipping company for the purposes of corporation tax. Paragraph 1(2) of that Schedule provides that the tonnage tax regime applies only if an election to that effect (“a tonnage tax election”) is made. The rules as to the making of a tonnage tax election are contained at Part 2 of Schedule 22. 

The Order provides for a new opportunity for the making of a tonnage tax election under Schedule 22.

Article 1 provides for citation and commencement.

Article 2 provides for a second further period of eighteen months during which new tonnage tax elections may be made. The second further period begins on 1st June 2023 and ends with 30th November 2024.

Article 3 adapts paragraph 12 of Schedule 22 in cases where a tonnage tax election is made during the second further period. 

A Tax Information and Impact Note has not been prepared for this instrument as it contains no substantive changes to tax policy.