41(1)It is a condition of remaining within tonnage tax that a company is not a party to any transaction or arrangement that is an abuse of the tonnage tax regime.U.K.
(2)A transaction or arrangement is such an abuse if in consequence of its being, or having been, entered into the provisions of this Schedule fall to be applied in a way that results (or would but for this paragraph result) in—
(a)a tax advantage being obtained for—
(i)a company other than a tonnage tax company, or
(ii)a tonnage tax company in respect of its non-tonnage tax activities,
or
(b)the amount of the tonnage tax profits of a tonnage tax company being artificially reduced.
[F1(3)In this paragraph “tax advantage” has the meaning given by section 840ZA of the Taxes Act 1988.]
(4)A F2... lease is not to be taken as being an abuse of the tonnage tax regime by reason of the lessor obtaining capital allowances as a result of the lease being, or having been, entered into.
[F3In this sub-paragraph “lease”, and “lessor” in relation to a lease, have the meaning given by paragraph 89(2).]
Textual Amendments
F1Sch. 22 para. 41(3) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 395 (with Sch. 2)
F2Word in Sch. 22 para. 41(4) repealed (10.7.2003) (with effect in accordance with Sch. 32 para. 3 of the amending Act) by Finance Act 2003 (c. 14), Sch. 32 para. 2(1)(a), Sch. 43 Pt. 3(11) (with Sch. 32 para. 4)
F3Words in Sch. 22 para. 41(4) substituted (10.7.2003) (with effect in accordance with Sch. 32 para. 3 of the amending Act) by Finance Act 2003 (c. 14), Sch. 32 para. 2(1)(b) (with Sch. 32 para. 4)