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D7.1002 Tonnage tax election

To enter into the regime a tonnage tax election must be made by a qualifying single company or a qualifying group. A group election will apply to all qualifying companies within the group¹.

An election must be made by notice to HMRC and be supported by such information as HMRC may require². A single company election must be made by that single company. A group election must be made jointly by all the qualifying companies in the group³. All companies in a tonnage tax group must come in or stay out together to prevent 'cherry picking', whereby a group could leave loss-making companies outside tonnage tax and only bring in profitable companies. For the definition of 'group' for the purposes of the tonnage tax rules, see D7.1026.

Where a company becomes a qualifying company and has not previously been a qualifying company, it can only elect to join the tonnage tax regime within 12 months of qualifying⁴. This is to prevent companies from switching between the tonnage