697P Withdrawal of relief etc. on company leaving tonnage tax

(1) This section sets out the consequences of a company ceasing to be a tonnage tax company.

(2) Any exemption given in respect of chargeable gains on the disposal of tonnage tax assets under section 697N is clawed back in the event of a company ceasing to be a tonnage tax company.

(5) & (6) Any balancing charge arising in the period in which the company was subject to tonnage tax in respect of which relief under paragraph 16 or 17 of Schedule 18B was taken is also clawed back in the event of a company ceasing to be a tonnage tax company.

(3) & (7) Provision is made for taxing the increased chargeable gain and the relief in respect of balancing charges which is clawed back.

(4) & (8) No relief is available for the gain brought back into charge to tax by, or for any tax charged as a result of, this section.

Relevant Date: Finance Act 2021