Taxes Consolidation Act 1997 Schedule 18B paragraph 4

Period for which election is in force

Paragraph 4 sets out the period for which a tonnage tax election remains in force and the circumstances in which it ceases to have effect.

• A tonnage tax election remains in force for a period of 10 years from the date it first takes effect.
• For a company election, the 10-year period begins on the first day the election has effect for that company; for a group election, it begins on the first day the election has effect for any member of the group.
• The election ceases to be in force if the company ceases to be a qualifying company or, in the case of a group election, the group ceases to be a qualifying group.
• The election may also cease to be in force under Part 4, for example where a company merger or reconstruction takes place.