The Tonnage Tax (Training Requirement) (Amendment etc.) Regulations 2025, effective October 1st, 2025, amend the 2000 Regulations by raising payments in lieu of maritime training from £1,421 to £1,705 and the higher rate payment for training failures from £1,329 to £1,613.
These changes apply to relevant four-month periods after September 30th, 2025, and revoke the similar 2023 regulations.
The amendments increase funding for the Maritime Training Trust.
Arguments For
Increased funding for maritime training: The regulation increases payments in lieu of training, providing more funding for the Maritime Training Trust. This could lead to improved training programs and a more skilled workforce in the maritime sector.
Alignment with inflation: The increased payments reflect the changes in the cost of living and training. This ensures that the payments remain relevant and effective.
Streamlined regulatory framework: The revocation of the 2023 regulations simplifies the legal framework, making it easier for companies to comply with the requirements.
Arguments Against
Unintended consequences on compliance: Increased costs for companies might lead to less willingness to participate in the tonnage tax scheme which could impact the number of vessels registered under this scheme and affect the associated tax revenue.
Limited impact assessment: The lack of a full impact assessment might indicate insufficient consideration of potential unforeseen effects on various stakeholders, including smaller shipping companies.
Administrative burden: Implementing new payment amounts may involve administrative costs for both companies and the government.
- Citation and commencement These Regulations may be cited as the Tonnage Tax (Training Requirement) (Amendment etc.) Regulations 2025 and come into force on 1st October 2025.
These regulations are officially known as the Tonnage Tax (Training Requirement) (Amendment etc.) Regulations 2025 and will become active on October 1st, 2025.
- Extent and application These Regulations extend to England and Wales, Scotland and Northern Ireland.
These regulations apply across the entire United Kingdom.
(1) These Regulations apply for the purposes of calculating the payments in lieu of training for the purpose of the Tonnage Tax (Training Requirement) Regulations 2000 in respect of a relevant four month period falling after 30th September 2025. (2) In paragraph (1), a “relevant four month period” means a period of four months commencing on 1st February, 1st June or 1st October in any year.
The regulations apply to payment calculations for training under the 2000 regulations after September 30th, 2025.
A 'relevant four-month period' starts on February 1st, June 1st, or October 1st of any year.
- Amendment of Regulations (1)The Tonnage Tax (Training Requirement) Regulations 2000 are amended as follows. (2)In regulation 15(1)(b) (payments in lieu of training) for “£1,421” substitute “£1,705”. (3)In regulation 21(4) (higher rate of payment in cases of failure to meet training requirement) for “£1,329” substitute “£1,613”.
The 2000 Regulations are changed.
The payment in lieu of training in regulation 15(1)(b) increases from £1,421 to £1,705.
The higher payment for not meeting training requirements in regulation 21(4) increases from £1,329 to £1,613.
- Revocation The Tonnage Tax (Training Requirement) (Amendment etc.) Regulations 2023 are revoked.
The Tonnage Tax (Training Requirement) (Amendment etc.) Regulations 2023 are canceled.
Explanatory Note (This note is not part of the Regulations) Schedule 22 to the Finance Act 2000 (the “2000 Act”) provides an alternative regime, called tonnage tax, for calculating the profits of a shipping company for the purposes of corporation tax. That regime incorporates certain training requirements. The Tonnage Tax (Training Requirement) Regulations 2000 (the “2000 Regulations”) allow companies or groups to make payments in lieu of training. Payments are to be made in lieu of training where the training commitment of a company or group provides for such payments, or where the company or group does not provide training in accordance with the training commitment as described in paragraph 25 of Schedule 22 to the 2000 Act. These Regulations amend the 2000 Regulations by increasing the amount of the payments which fall to be made in lieu of training and which are payable to the Maritime Training Trust (Registered Office: 30 Park Street, London, SE1 9EQ). Regulation 4 increases the amount payable for each month during a relevant four month period commencing on or after 1st October 2025 in respect of the training requirement under the Tonnage Tax (Training Requirement) Regulations 2000 from £1,421 to £1,705. Where a company or group is treated as having failed to meet its training commitment and the higher rate of payment applies, the basic rate which is used to calculate the higher rate is increased from £1,329 to £1,613. Regulation 5 revokes the Tonnage Tax (Training Requirement) (Amendment etc.) Regulations 2023 which increased the rates in 2023 and are superseded by these Regulations. No impact assessment has been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen. Instead, a de minimis assessment has been prepared and has been published, with an Explanatory Memorandum, alongside these Regulations at www.legislation.gov.uk.
This explanatory note provides background information on the tonnage tax system and the rationale for the amendments.
It explains that the 2000 Act established a tonnage tax system with training requirements, and the 2000 Regulations allowed payments in lieu of training.
The current regulations update the payment amounts, increasing them to reflect changes in cost and inflation.
The 2023 regulations are consequently revoked.
A de minimis assessment, instead of a full impact assessment, was prepared due to the anticipated negligible impact on the public and private sectors.