Explanatory note

Schedule 22 to the Finance Act 2000 (c. 17)  (the “2000 Act”) provides an alternative regime, called tonnage tax, for calculating the profits of a shipping company for the purposes of corporation tax. That regime incorporates certain training requirements. The Tonnage Tax (Training Requirement) Regulations 2000 (S.I. 2000/2129) (the “2000 Regulations”) allow companies or groups to make payments in lieu of training. Payments are to be made in lieu of training where the training commitment of a company or group provides for such payments, or where the company or group does not provide training in accordance with the training commitment as described in paragraph 25 of Schedule 22 to the 2000 Act.

These Regulations amend the 2000 Regulations by increasing the amount of the payments which fall to be made in lieu of training and which are payable to the Maritime Training Trust (Registered Office: 30 Park Street, London, SE1 9EQ).

Regulation 4 increases the amount payable for each month during a relevant four month period commencing on or after 1st October 2025 in respect of the training requirement under the Tonnage Tax (Training Requirement) Regulations 2000 from £1,421 to £1,705.

Where a company or group is treated as having failed to meet its training commitment and the higher rate of payment applies, the basic rate which is used to calculate the higher rate is increased from £1,329 to £1,613.

Regulation 5 revokes the Tonnage Tax (Training Requirement) (Amendment etc.) Regulations 2023 (S.I. 2023/983) which increased the rates in 2023 and are superseded by these Regulations.

No impact assessment has been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen. Instead, a de minimis assessment has been prepared and has been published, with an Explanatory Memorandum, alongside these Regulations at www.legislation.gov.uk.