Taxes Consolidation Act 1997 Schedule 18B paragraph 28

Demerger: single company

Paragraph 28 deals with the tonnage tax position of a company that leaves a tonnage tax group without joining another group, and with the continuing status of the remaining group members.

• Where a tonnage tax company leaves a tonnage tax group and does not join another group, it is treated as if it had made a single company tonnage tax election.
• This deemed single company election remains in force until the original group election would have expired.
• If two or more members remain in the original group, and any of them is a qualifying company, the remaining companies continue to be treated as a tonnage tax group.
• The original group election continues to apply to the remaining group for the balance of its term.