Commentary

D7.1005 Qualifying conditions—minimum training requirement

Corporate tax
Corporate tax | Commentary

D7.1005 Qualifying conditions—minimum training requirement

Corporate tax | Commentary

D7.1005 Qualifying conditions—minimum training requirement

A company or group making a tonnage tax election must meet the 'minimum training obligation'1 (although there is a procedure whereby this obligation can be discharged through a payment in lieu (see below)).

Training obligation

The training obligation is set out in the Tonnage Tax (Training Requirements) Regulations, SI 2000/2129 which specify a minimum training obligation to recruit and provide the first year of training for either:

  1.  

    (a)     one officer trainee per year for every 15 officer posts entered on the Safe Manning Certificates/Safe Manning Documents for all vessels entered in the tonnage tax regime, adjusted to include back-up crew provision. In addition, the company or group must continue to provide training for trainees who started in the previous two years2. Therefore after three years the obligation will effectively be to train three officer trainees for every 15 officer posts; or

  2.  

    (b)     (from 1 October 2015) three eligible ratings trainees in place of each officer trainee that it is required to train under (a) above3.

An officer trainee/ratings trainee is a person on a relevant course/training who is ordinarily resident in the UK and either a national of a European Economic Area (EEA) State, a British citizen or a British citizen from the Channel Islands or Isle of Man4.

Where a company is a member of a tonnage tax group, the obligation is calculated on a group basis5. Therefore any intra-group charters are ignored.

Training commitment

A tonnage tax company or group must both:

  1.  

    (a)     produce a statement setting

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial