SCHEDULE 22 Tonnage tax
Part I Introductory
Tonnage tax profits: method of calculation
4
(1)
A company’s tonnage tax profits for an accounting period are calculated in accordance with this paragraph by reference to the net tonnage of the qualifying ships operated F1or managed by the company.
For the purposes of the calculation the net tonnage of a ship is rounded down (if necessary) to the nearest multiple of 100 tons.
(2)
The calculation is as follows:
F2Step One
Determine the daily profit for each qualifying ship operated by the company and each qualifying ship managed by the company by reference to the following table and the net tonnage of the ship—
Net tonnage | Daily Profit | |
|---|---|---|
Operated ship | Managed ship | |
For each 100 tons up to 1,000 tons | £0.60 | £0.12 |
For each 100 tons between 1,000 and 10,000 tons | £0.45 | £0.09 |
For each 100 tons between 10,000 and 25,000 tons | £0.30 | £0.06 |
For each 100 tons above 25,000 tons | £0.15 | £0.03 |
Step Two
Work out the ship’s profit for the accounting period by multiplying the daily profit by—
(a) the number of days in the accounting period, or
(b) if the ship was operated by the company as a qualifying ship for only part of the period, by the number of days in that part.
Step Three
Follow Steps One and Two for each of the qualifying ships operated by the company in the accounting period.
Step Four
Add together the resulting amounts and the total is the amount of the company’s tonnage tax profits for that accounting period.