Section 697L Tonnage tax trade

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Amendments

Section 697L inserted by Finance Act 2002 section 53(1) from 28 March 2003.

(1) Subject to section 697M, where in an accounting period a tonnage tax company carries on as part of a trade tonnage tax activities, those activities shall be treated for the purposes of the Corporation Tax Acts (other than any provision of those Acts relating to the commencement or cessation of a trade) as a separate trade distinct from all other activities carried on by the company as part of the trade.

Are my tonnage tax activities regarded as a separate trade for tax purposes?

(1) Yes.

(2) An accounting period of a company shall end (if it would not otherwise do so) when the company enters or leaves tonnage tax.

Is my company's accounting period affected when I enter or leave tonnage tax?

(2) Your company accounting period ends when you enter or leave tonnage tax.

(3) A company to which subsection (1) applies shall, as respects any activities which are treated by virtue of that subsection as a separate trade distinct from all other activities carried on by that company as part of its trade, comply with all the requirements of the Tax Acts and the Capital Gains Tax Acts as respects those activities regarding the computation of tax and the keeping of records separate from any other activity carried on by that company.

Amendments

Subs (3) inserted by Finance Act 2003 section 62(1)(c) as on and from 28 March 2003.

What other tax laws apply to my tonnage tax activities?

(3) As a tonnage tax company, you must comply with all laws relating to income tax, corporation tax and capital gains tax as regards:...

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