SolvedTTM05240 | The 75% limit on charters-in: How to calculate
From HM Revenue & Customs · Tonnage Tax Manual
Example 3: All ships operated for whole accounting period
A company operates the following ships during year ended 31/12/2003:
| Ship | Control | No. of days | Net tonnage |
|---|---|---|---|
| Tanker 1 | Time chartered | 365 | 30000 |
| Tanker 2 | Time chartered | 365 | 20000 |
| Bulk carrier | Finance leased | 365 | 10000 |
| Gas tanker | Bareboat chartered | 365 | 15000 |
| Product tanker 1 | Time chartered | 365 | 5000 |
| Product tanker 2 | Owned | 365 | 5000 |
| Total tonnage | - | - | 85,000 |
The vessels neither owned nor bareboat chartered are
| Ship | Control | No. of days | Net tonnage |
|---|---|---|---|
| Tanker 1 | Time chartered | 365 | 30000 |
| Tanker 2 | Time chartered | 365 | 20000 |
| Product tanker 1 | Time chartered | 365 | 5000 |
| Chartered-in tonnage | - | - | 55.000 |
So the percentage is simply 55,000/85,000 x 100 = 64.7 (below the 75% limit).
References
| Reference | Link |
|---|---|
| How to calculate 75% limit | TTM05200 |