Taxes Consolidation Act 1997 Schedule 18B paragraph 5

Effect of election ceasing to be in force

Paragraph 5 of Schedule 18B provides that once a tonnage tax election ceases to be in force, it no longer has any effect in relation to the company concerned.

• When a tonnage tax election ceases to be in force, it ceases to have effect in relation to any company.
• The company can no longer compute its profits using the tonnage tax method.
• The company must revert to calculating its profits under normal corporation tax rules.
• The cessation of effect applies regardless of the reason the election ceased to be in force.