UK Budget 2012 Includes Good Signs for Shipping Industry: Moore Stephens

Press Release
Wednesday, March 21, 2012

International shipping adviser Moore Stephens said the UK budget for 2012 contains some encouraging signs for the shipping industry.

The government has stated that it will consult later this year on whether to introduce a rule allowing companies with a non-sterling functional currency to compute their capital gains and losses in such functional currency, rather than in sterling, as is currently the case. 

“This is of particular relevance for UK companies, which own vessels outside the UK tonnage tax regime, either because the company did not elect into tonnage tax, or because the ship does not qualify for tonnage tax - for example, because it is chartered out on a long-term bareboat charter, or is a type of vessel excluded from tonnage tax, such as a fishing vessel,” said Moore Stephens tax partner Sue Bill.  “As all capital gains are currently calculated in sterling, where a company has a different functional currency, its capital gains and losses will include an exchange gain or loss. This possible change in the rules would minimize taxable capital gains arising due to (or being reduced by) exchange rate movements.” 

Another change introduced by the budget is a reduction in corporation tax rate by an additional one per cent in April, 2012. This means that the rate will be 24 per cent in April, 2012, reducing to 23 per cent in April, 2013, and 22 per cent in April, 2014. The government has said that it expects this measure to increase the level of business investment in the UK by approximately one per cent.

The government has also announced an internal review to examine the role of employee ownership in supporting growth and to look at options to remove barriers, including tax barriers, to its wider take-up.  However, the likely outcome of any such review remains unclear at present.

“Generally, the budget has emphasized the importance which the government attaches to ensuring that the UK is a competitive regime for industry, and of ‘rebalancing’ the economy,” said Bill. “This is an encouraging sign for the shipping industry, which is awaiting consultation on the UK tonnage tax regime and the forthcoming EU review of the State Aid Guidelines to Maritime Transport.” 

Moore Stephens LLP is widely acknowledged as a leading shipping and insurance adviser.

 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter July 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

No Clues on Hanjin's Financial Health

Cash-strapped Hanjin Shipping Co. sources say that the negotiations with tonnage providers for lower rates are undergoing, but wouldn't say much else.   According to Korea Herald, the country's No.

DP World's H1 Volumes Rise

Ports operator DP World reported on Tuesday first-half 2016 gross container volumes up 1.2 percent on a like-for-like basis and up 2.5 percent on a reported basis.

Samil PwC Okays Hyundai's Management Improvement Plan

Hyundai Heavy Industries (HHI) is notified by Samil PwC, a local member of the global accounting firm PwC, that its 3.5 trillion won worth management improvement

Finance

Dubai Shipping Volumes Sink

 Dubai shipping volumes - cargo handled at Dubai's ports, which includes flagship terminal Jebel Ali - fall for third quarter Gulf News reports quoting the latest DP World figures.

No Clues on Hanjin's Financial Health

Cash-strapped Hanjin Shipping Co. sources say that the negotiations with tonnage providers for lower rates are undergoing, but wouldn't say much else.   According to Korea Herald, the country's No.

China Joins UN Trucking Treaty

China has taken a major step towards establishing a speedy new "Silk Road" to Europe by signing up to a U.N. trucking treaty.   Fifteen years after joining the World Trade Organization (WTO),

News

No Clues on Hanjin's Financial Health

Cash-strapped Hanjin Shipping Co. sources say that the negotiations with tonnage providers for lower rates are undergoing, but wouldn't say much else.   According to Korea Herald, the country's No.

NASSCO Delivers Garden State to APT

Marking its seventh ship delivery in the span of just over a year, General Dynamics NASSCO has delivered the newly built ECO Class tanker Garden State for American Petroleum Tankers.

Long Beach Awards Sovcomflot for Green Shipping

PAO Sovcomflot earned the Green Environmental Achievement Award from California's Port of Long Beach, recognizing the shipper for its ongoing commitment to environmental stewardship.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Pod Propulsion Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Winch
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: 0.1199 sec (8 req/sec)