Shipping in UK 2009 Budget

Friday, April 24, 2009

Shipping accountant Moore Stephens said the fact that the 2009 UK Budget does not include any measures which significantly affect the shipping sector could be regarded as good news for the industry.

Although the government has been asked to make changes to UK tonnage tax, the 2009 Budget makes no mention of it. Moore Stephens tax partner Sue Bill said, “Possible changes to the tonnage tax regime could have included an amendment to the EU flagging rules excluding ships time-chartered into the fleet, and clarification of the position with regard to the changes proposed in January 2008 which were later withdrawn. But these are complex issues to resolve as they depend on agreement with the European Commission. 

“In the current economic climate, it is not surprising that the relatively minor change to the tonnage tax regime which has been requested has not been made, and that the UK government’s position has not been clarified. Companies in the shipping sector may in any case have more pressing financial concerns at the moment. And, overall, the fact that there is not a great deal of specific interest for the shipping sector might be regarded as good news, because the taxation regime at least continues to be reasonably stable”.

Further tonnage tax guidance is expected in the next few months from Brussels and is expected to cover issues such as whether ship management companies can be included in tonnage tax regimes.

The Budget does, however, include some provisions which could be of interest to some shipping groups. The Finance Bill 2009 will include an exemption from tax for most foreign dividends.  In conjunction with this there are consequent minor changes to the rules relating to so-called ‘controlled foreign companies’ (CFCs).  The exemption from the CFC rules which previously applied if the company followed an ‘acceptable distribution policy’ will no longer apply and certain holding company exemptions will also be removed. 

Sue Bill said, “An exemption from tax for most foreign dividends may be helpful for some international groups.  However, the CFC rules will still apply and those will need to be taken into consideration.”


News

Yangzijiang Shipbuilding to Slash 2,000 More Jobs

Chinese shipbuilder Yangzijiang Shipbuilding Holdings Ltd said it plans to cut 2,000 additional jobs, just under 10 percent of its current workforce, stepping up

Hapag-Lloyd: UASC Merger Benefits to show in 2017

German container shipping line Hapag-Lloyd expects to reap a third of targeted annual synergies of $400 million from the planned merger with Arab rival UASC already next year,

Danish Maritime Authority Supports Maritime Cultural Days

The Danish Maritime Authority's buoy tender ’POUL LØWENØRN’ will be alongside in Korsør in connection with the Maritime Cultural Days. The vessel will be open to visitors throughout Saturday,

 
 
Maritime Contracts Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0946 sec (11 req/sec)