Tonnage tax continuity governs qualifying shipping-company amalgamations and demergers, preserving scheme application through applicable unexpired option periods.

Section 233 continues tonnage-tax treatment for qualifying shipping companies undergoing amalgamation or demerger. An amalgamated company that is not already within the scheme must exercise the prescribed option within three months of approval of the amalgamation scheme. If all amalgamating companies are tonnage-tax companies, coverage continues for the longest unexpired option period. Following a demerger, a qualifying resulting company may receive the scheme for the unexpired period, while the demerged company's option continues if it remains qualifying.

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