SolvedTTM01340 | Introduction to tonnage tax: Tonnage tax profits
From HM Revenue & Customs · Tonnage Tax Manual
Example computation
A company operates the following vessels during the accounting period, year ended 31 December 2013:
| Ship | Net Tonnage | Ownership | Days Operated |
|---|---|---|---|
| Oil Tanker | 32495 | Owned | 365 |
| Parcel Tanker | 14583 | Time-chartered | 180 |
| Supply vessel | 310 | Finance-leased | 365 |
The tonnage tax profits may be calculated as follows:
| Oil Tanker - Daily profit | Gas Tanker - Daily profit | Supply Vessel - Daily profit | ||||
|---|---|---|---|---|---|---|
| Net Tons | 32495 | - | 14583 | - | 310 | - |
| 0-1,000 | 10 x 0.60 | 6 | 10 x 0.60 | 6 | 3 x 0.60 | 1.8 |
| 1,001-10,000 | 90 x 0.45 | 40.5 | 90 x 0.45 | 40.5 | 0 | 0 |
| 10,001-25,000 | 150 x 0.30 | 45 | 45 x 0.30 | 13.5 | 0 | 0 |
| >25,000 | 74 x 0.15 | 11.1 | 0 | 0 | 0 | 0 |
| Total Daily Profit | - | 102.6 | - | 60 | - | 1.8 |
| No of Days | - | 365 | - | 180 | - | 365 |
| Profit for AP | - | 37,449 | - | 10,800 | - | 657 |
| CT Profit | - | 48,906 | - | - | - | - |
References
Method of calculation TTM01300