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.

 


People & Company News

MN100: MarineCFO

The Company: Founded in 1992, UA Business Solutions was a pioneer in the field of Enterprise Resource Planning (ERP) and an early Microsoft Partner. The ERP evolution

MN100: All American Marine, Inc.

The Company: All American Marine Inc. was founded in 1987 and specializes in the construction of custom tailored aluminum boats from 30 to 150 feet LOA. Today,

Five Minutes with Paul Switzer

Five minutes with Paul Switzer - Manager, Shipbuilding & Offshore, Viega   For readers not familiar with Viega, please give a ‘birds eye’ view, putting the company

Finance

China COSCO Falls to H1 Net Loss

China COSCO Holdings Co Ltd fell to a first-half loss hurt by a persistent slump in the global container market, the world's fourth largest container shipper said on Thursday.

Weak Freight Rates push Grindrod to H1 loss

Africa's biggest shipping group Grindrod reported a first-half loss on Thursday, pressured by low global growth and declining dry bulk shipping rates but it expects

Cosco Eyes Spanish port of Algeciras

Algeciras Bay Port Authority in southern Spain has put up a tender for its third container terminal, and China's Cosco Shipping Ports is already being mentioned as a fore runner candidate,

News

El Faro Captain Ordered Crew to Abandon Ship before Sinking

The captain of the doomed El Faro cargo ship sounded an alarm for his crew to abandon the vessel shortly before it sank last fall in a hurricane near the Bahamas, killing all 33 onboard, the U.

China COSCO Falls to H1 Net Loss

China COSCO Holdings Co Ltd fell to a first-half loss hurt by a persistent slump in the global container market, the world's fourth largest container shipper said on Thursday.

Weak Freight Rates push Grindrod to H1 loss

Africa's biggest shipping group Grindrod reported a first-half loss on Thursday, pressured by low global growth and declining dry bulk shipping rates but it expects

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Pipelines Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
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: 0.1260 sec (8 req/sec)