TTM06120 | Relevant shipping profits: Secondary activities qualifying up to set limits

The secondary activities that qualify up to set limits are described in SI00/2303/REG3 (4). There are three categories:

• Work carried out for third parties, see TTM06130;

• Betting and gambling, see TTM06150;

• Sale of luxury goods, see TTM06160.

Cliff edge

Some of the rules allow activities up to a certain limit. Where this limit is breached, the whole of the profit or loss from that activity will fall outside the tonnage tax ring-fence. HMRC will apply this criterion flexibly in relation to occasional minor breaches, but not if breaches become habitual.