TTM03925 | Qualifying companies and ships: Flagging - condition 3

FA00/SCH22/PARA22A (4)

These EU/EEA 'flagging' rules were repealed by FA22/S25 (6) and (7) with effect from 1 April 2022

Condition 3 compared the proportion of the company’s total tonnage that was flagged on a relevant register (EU/EEA plus UK and Gibraltar) with the proportion that was so flagged at the reference date.

If the percentage in condition 2 (TTM03920) that was flagged on a relevant register was either the same, or had increased since the reference date, then the condition did not apply and where that ship was registered did not affect whether it was a qualifying ship for tonnage tax purposes.

For a single company the reference date was the later of:

• 17 January 2004 and

• the last day of the accounting period in which the company became a tonnage tax company.

Where the company was a member of a tonnage tax group then the reference date was the later of:

• 17 January 2004 and

• the last day of the accounting period in which the group became a tonnage tax group.

The legislation was amended by SI2020/332 to maintain its effect following departure from the EU/EEA, referring to relevant registers, but it was repealed by FA22 with effect from 1 April 2022.