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TTM03001 | Qualifying companies and ships: Qualifying company

From HM Revenue & Customs · Tonnage Tax Manual

Meaning

A company is a ‘qualifying company’ for tonnage tax purposes if:

  • it is within the charge to Corporation Tax,

  • it operates or manages (see TTM03100) one or more qualifying ships (see TTM03500), and

  • those ships are strategically and commercially managed in the United Kingdom (see TTM03800).

Exception - temporarily ceasing to operate qualifying ships

The only exception to this definition is that a company that temporarily ceases to operate qualifying ships may continue to be a qualifying company if certain conditions are met. See TTM03050.

Non-residents

A non-resident company trading in the UK through a permanent establishment (broadly, branch or agency, see INTM264000) is within the charge to Corporation Tax, and can be a qualifying company if the other conditions are satisfied. See TTM03800.