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The Tonnage Tax (Training Requirement) Regulations 2000

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Higher rate of payment in case of failure to meet training requirement

21.—(1) Subject to paragraph (3), a company or group is to be treated as failing to meet its training commitment in any year where it fails to provide training on a relevant course for at least 50% of the total number of eligible officer trainees for whom the company or group proposed to provide such training in its training commitment.

(2) Subject to paragraph (3)—

(a)if a company fails to meet its training commitment in a particular year, the basic rate of any payments in lieu of training that fall to be made by the company in the following year shall be increased by 50%;

(b)if a group fails to meet its training commitment in a particular year, the basic rate of any payments in lieu of training that fall to be made by any member of the group in the following year shall be increased by 50%; and

(c)if a company or group fails to meet its training commitment in two or more successive years, the basic rate of any payments in lieu of training shall be increased by 100% in the third and subsequent years.

(3) The higher rate shall not be payable where the Secretary of State is satisfied that there are mitigating circumstances for the company’s or group’s failure to meet the training commitment.

(4) For the purposes of paragraph (2), “the basic rate” is £500 per eligible officer trainee per month.

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