229 Harbour authorities and port companies

Summary

This section provides that port companies and other companies controlling harbours are exempt from corporation tax for the period 1 January 1997 to 31 December 1998 in respect of their income derived from the normal provision of harbour facilities. From 31 December, 1998 corporation tax will be chargeable on those companies in respect of such income on a phased basis. The phasing arrangements involve a 2/3rds reduction in taxable income in the year 1999, and a 1/3rd reduction in the year 2000; the income is fully taxable thereafter. Harbour authorities which are not companies are exempt from tax in respect of income derived from the provision of harbour facilities.

Details

Definitions

(1) A “relevant body” is —

• a harbour authority under the Harbours Act, 1946,
• all companies established under the section 7 of the Harbours Act, 1996, and
• other companies which control harbours and which carry on a trade of the type carried on by such harbour authorities and such port companies.

“relevant profits or gains” is profits/gains of a relevant body derived from the provision of normal harbour facilities for vessels, goods and passengers. Thus, income and gains from other activities are outside the scope of the exemption.

Exemption

(2) & (3) Exemption from tax under Schedule D in respect of relevant profits is granted, for the years 1997 and 1998, to all harbour authorities, port companies and other companies controlling harbours. This exemption is extended indefinitely for all harbour authorities (within the meaning of the Harbours Act, 1946).

Transitional arrangements

(4) With effect from 1 January, 1999, port companies chargeable to corporation tax under Schedule D in respect of relevant profits are taxable on a phased basis. The phasing in arrangements involve a 2/3rd reduction in those profits in the year 1999 and a 1/3rd reduction in the year 2000, with all port companies being fully taxable thereafter. Harbour authorities which are not port companies remain exempt from tax in respect of such profits – see subsection (3).

Relevant Date: Finance Act 2019