TTM09305 | Capital allowances: Exit from tonnage tax (P&M) on the expiry of an election or the taking effect of a withdrawal notice

Qualifying expenditure

Where a company leaves tonnage tax on the expiry of an election or the taking effect of a withdrawal notice, see TTM14080, it is treated as having incurred qualifying expenditure on its tonnage tax plant and machinery assets equal to the lower of cost or market value. This is instead of the fixed percentage provided for in SI00/2303.