Taxes Consolidation Act 1997 Schedule 18B paragraph 26

Merger: tonnage tax group or company and non-qualifying group or company

Paragraph 26 deals with the treatment of a merger between a tonnage tax group or company and a non-qualifying group or company, confirming that the resulting group is a tonnage tax group.

• Applies where a tonnage tax group or company merges with a group or company that does not qualify for tonnage tax.
• The group resulting from the merger is treated as a tonnage tax group.
• The tonnage tax status of the resulting group derives from the existing election of the tonnage tax group or company involved in the merger.
• No new tonnage tax election is required for the merged group.