Tonnage tax scheme continues to apply to qualifying merged or resulting shipping companies, subject to existing option periods. On amalgamation, the tonnage tax scheme applies to the amalgamated company if it is a qualifying company; a non-tonnage tax amalgamated company must opt into the scheme within a short period after scheme approval. If all amalgamating companies were under the tonnage tax scheme, the amalgamated company inherits the longest unexpired option period. A transitional clause excludes application where a constituent failed to exercise a prior option by the earlier cut-off. On demerger, the scheme may apply to the resulting company for the unexpired period and the demerged company's option endures for any unexpired period if it remains qualifying.