This Order disapplies paragraph 22A of Schedule 22 to the Finance Act 2000 for the financial year 2005 (which commenced on 1st April 2005: see section 834 of the Income and Corporation Taxes Act 1988). Paragraph 22A would otherwise have effect from 30th June 2005 (paragraph 22A(2)).
Paragraph 8 of Schedule 7 to the Finance Act 2005 introduced (to comply with European Community guidelines on State aid to maritime transport) a general requirement that ships entering the Tonnage Tax regime in future should be Community-flagged. Paragraph 22B(2) of Schedule 22 to the Finance Act 2000 gives the Treasury power to disapply that rule on a year-by-year basis (subject to certain conditions for the financial year 2006 onwards). This Order accordingly disapplies that rule for financial year 2005.
This Order imposes no costs on business.