Relevant shipping income exclusion from book profit narrowed to a specific book profit computation, clarifying tonnage tax scope and compliance.
Relevant shipping income comprises profits from enumerated core ship operations and prescribed incidental activities for a tonnage tax company; incidental receipts above the prescribed threshold are excluded from the tonnage measure and taxed generally. Transfers between tonnage and non tonnage businesses are to be tested at market value or, where impracticable, computed on a reasonable basis by the Assessing Officer. Common costs and depreciation must be reasonably allocated, losses in relevant shipping income are ignored for tonnage computation, and the book profit or loss from relevant shipping activities is excluded from the company's book profit for the specified computation under section 206.