TTM14220 | Exiting tonnage tax: Effects of exiting tonnage tax regime

Exit charge: Balancing charges

Where:

• for an accounting period ending not more than six years before the day on which the company ceased to be a tonnage tax company, and

• a balancing charge has been wholly or partially reduced by the balancing charge phase-out relief in FA00/SCH22/PARA78,

then the total of all such reductions is assessed as additional profits chargeable to Corporation Tax immediately before it ceased to be a tonnage tax company (PARA139); that is, the final tonnage tax accounting period.

No relief, deduction or set-off of any description is allowed against those profits or the Corporation Tax on them (PARA139 (5)).

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