697D Election for tonnage tax

(1) The tonnage tax method of calculating profits for corporation tax purposes can only be used by a qualifying company which has elected (either by way of a company election or a group election) for tonnage tax.

(2) If a group election is to be made all qualifying companies in the group must join in the election by way of a joint election. Such a joint election has effect for all qualifying companies in the group.

(3) The election only has effect if the provisions of section 697E in relation to the 75% limit and section 697F in relation to not engaging in tax avoidance are complied with.

(4) The provisions of Part 1 of Schedule 18B are specifically applied for the purposes of making and giving effect to an election to tonnage tax.

Relevant Date: Finance Act 2019