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Home / Simons-Taxes /Corporate tax /Part D7A Other special sectors /Division D7.10 Shipping companies and tonnage tax /Entry into the regime / D7.1006 Qualifying conditions—75% limit on chartered in tonnage
Commentary

D7.1006 Qualifying conditions—75% limit on chartered in tonnage

Corporate tax

No more than 75% of the net tonnage of the qualifying ships operated by the company or group can be chartered in. This condition does not apply to companies or groups that manage, but do not operate, qualifying ships, which are eligible to make a tonnage tax election on or after 1 April 20241.

For this purpose, 'chartered in' means chartered to the company otherwise than on bareboat terms (ie without a skipper or crew). A limit on time and voyage charters of 75% of the net tonnage was fixed so that only ship operators with core activity of full ship-operation could benefit from the regime, whilst still allowing the flexibility of such charters. Charters between qualifying tonnage tax companies in the same group are ignored and a ship is not counted more than once in considering the 75% test.

In the case of a group, the 75% limit applies to the aggregate

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Web page updated on 17 Mar 2025 17:39