Amendments made: 16, in clause 24, page 15, line 34, leave out ‘moving into tonnage tax’ and insert ‘joining tonnage tax group’.

Amendment 17, in clause 24, page 15, line 36, leave out from ‘if’ to end of line 38 and insert ‘—

(a) on that day A becomes a member of a tonnage tax group for the purposes of Schedule 22 to FA 2000 without entering tonnage tax on that day, or

(b) the day ends immediately before the day on which, for the purposes of that Schedule, A both becomes a member of a tonnage tax group and enters tonnage tax.”’.

Amendment 18, in clause 24, page 16, line 26, leave out ‘moving into tonnage tax’ and insert ‘joining tonnage tax group’.

Amendment 19, in clause 24, page 16, line 28, at end insert—

‘(7A) In Schedule 22 to FA 2000 (tonnage tax), after paragraph 79 insert—

79A (1) This paragraph applies if—

(a) a balancing charge under this Part of this Schedule arises to the company on the disposal of any plant or machinery, and

(b) the plant or machinery is taken into account in calculating income that the company is treated as receiving under section 383 or 417 of the Corporation Tax Act 2010 (sales of lessors) as a result of section 394ZA of that Act (company joining tonnage tax group).

(2) The balancing charge is to be reduced by the relevant part of the sales of lessors expense so far as relief has not previously been given for that expense (whether under this sub-paragraph or otherwise).

(3) “The sales of lessors expense” means—

(a) the expense which the company is treated as incurring under section 383 or 417 of the Corporation Tax Act 2010 as a result of section 394ZA of that Act, or

(b) if section 386 or 419 of that Act applies or has applied, the expense which derives from the expense within paragraph (a).

(4) If the sales of lessors expense is incurred at a time when the company is in tonnage tax, the “relevant part” of that expense is so much of it as, on a just and reasonable basis, is attributable to the matters set out in paragraph 56(1)(a) or (b).

(5) If—

(a) the sales of lessors expense is not incurred at a time when the company is in tonnage tax,

(b) that expense is taken into account in calculating a loss made by the company in a trade, and

(c) the loss is one to which paragraph 56 applies,

the “relevant part” of the sales of lessors expense is so much of the apportioned loss as, on a just and reasonable basis, is derived from the sales of lessors expense.

(6) The reference here to the apportioned loss is to the loss that is attributable to the matters set out in paragraph 56(1)(a) or (b).”’.

Amendment 20, in clause 24, page 16, line 30, leave out paragraphs (a) and (b) and insert—

‘(a) where the income arises as a result of a company becoming a member of a tonnage tax group on or after 21 March 2012 and entering tonnage tax at the same time,

(b) where the income arises as a result of a company becoming a member of a tonnage tax group on or after 23 April 2012 without entering tonnage tax at the same time, or

(c) where the relevant day is on or after 21 March 2012 (in any case not within paragraph (a) or (b)).’.

Amendment 21, in clause 24, page 16, line 33, leave out from ‘(5)’ to end of line 35 and insert ‘and (7A) have effect—

(a) where a company becomes a member of a tonnage tax group on or after 21 March 2012 and enters tonnage tax at the same time, or

(b) where a company becomes a member of a tonnage tax group on or after 23 April 2012 without entering tonnage tax at the same time.’.

Amendment 22, in clause 24, page 16, line 36, leave out from ‘effect’ to end of line 37 and insert ‘—

(a) except in a case within paragraph (b), where the transfer day is on or after 21 March 2012, and

(b) in a case where the relevant change in the relationship occurs as a result of a company becoming a member of a tonnage tax group without entering tonnage tax at the same time, where the transfer day is on or after 23 April 2012.’.—(Mr Gauke.)