Taxation of Chargeable Gains Act 1992 Schedule 7AB paragraph 10

Schedule 22 to the Finance Act 2000

Paragraph 10 of Schedule 7AB addresses the interaction between the substantial shareholding exemption and the provisions of Schedule 22 to the Finance Act 2000, which deals with tonnage tax for shipping companies.

• This paragraph ensures that the substantial shareholding exemption works alongside the tonnage tax regime set out in Schedule 22 to the Finance Act 2000.
• The tonnage tax regime allows qualifying shipping companies to calculate their profits based on the net tonnage of their ships rather than on actual trading profits, which can affect how chargeable gains are computed.
• Where a company is within the tonnage tax regime, specific rules may modify or override the normal application of the substantial shareholding exemption to disposals of shares in shipping companies.
• This provision was amended by Finance Act 2011, Schedule 10, paragraph 5(c), to update the interaction between these two regimes.