Shipping companies have been advised to examine their UK tonnage tax deadlines as some reach expiry.
Sue Bill, tax partner at leading accountant Moore Stephens said: “In the UK, tonnage tax elections are made for a ten-year period. As the regime was first introduced in the Finance Act 2000, it is likely that many of the elections made at that time may now have either expired or be due for renewal shortly.
According to Ms Bill, renewal elections may be submitted within a ten-year period of the company being in tonnage tax, but the official deadline depends on which date the company entered into the tax regime. Failure to make an election within this ten-year period will result in the company being forced to leave tonnage tax so it is critical that renewal elections deadlines are carefully observed, Ms Bill said.
The Chamber of Shipping has told members struggling to make a renewal election following a missed deadline to make contact.