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TTM02301 | Tonnage tax elections: Example 1

From HM Revenue & Customs · Tonnage Tax Manual

Election in a further window of opportunity.

A singleton company decides it wants to make a tonnage tax election on 30 June 2006. Its accounting date is 31 December each year.

The normal rule is that a company elects in with effect from the beginning of the accounting period during which the election is made, that is, 1 January 2006; or it can with the HMRC’s agreement:

  • backdate the election to 1 January 2005,

  • elect in with effect from the beginning of the accounting period following that during which it made the election, that is, 1 January 2007, or

  • in exceptional circumstances, elect in with effect from the beginning of the accounting period following the one after that during which the election was made, 1 January 2008.