Moore Stephens: UK 2016 Budget to Impact Shipping, Offshore Sectors
UK Budget 2016 provides surprises for shipping and radical measures for offshore maritime sector. Leading accountant and shipping adviser Moore Stephens says the UK Budget 2016 contains a number of surprise developments which are likely to be of interest to the shipping sector, as well as a radical set of measures which it is hoped will assist the offshore maritime oil and gas sector. The Government announced a further reduction in the rate of corporation tax, which will be 17% from 1 April 2020. There are also significant reductions in the rates of capital gains tax. From 6 April 2016, the higher rate of capital gains tax for individuals will be reduced from 28% to 20%…
Proposed UK Non-dom Tax Changes, No Need to Panic
Shipping should not panic in wake of proposed U.K. Shipowners likely to be affected by wide-ranging changes to the taxation of non-U.K.-domiciliaries introduced in the U.K. Summer Budget have been urged not to panic by international accountant and shipping adviser Moore Stephens, which says it will actively participate in the consultation process in the lead-up to planned implementation of the changes on April 6, 2017. Gill Smith, a tax partner with Moore Stephens, said, “The proposed changes to the taxation of non-doms are short on detail at the moment.
UK Statutory Residence Test Does Away with Grey Areas
International accountant and shipping adviser Moore Stephens says the introduction by the UK of a statutory residence test will bring much greater certainty to an area previously decided largely on the basis of case law and government practice. The UK is introducing the statutory residence test with effect from 6 April, 2013. Gill Smith, a tax partner with Moore Stephens, explains, “At present, there is no statutory definition of residence, but rather case law and HMRC practice. Under the new test, individuals will always be resident if they spend 183 days in the UK. As is the case now, a day counts if the individual is in the UK at midnight. Automatic residence is also achieved if individuals are working in the UK full-time or, broadly, have their only home there.
U.K. Property Tax Changes Affect Shipping Interests
International accountant and shipping consultant Moore Stephens said many overseas companies, including some connected to shipping interests, will be among those affected by draft legislation from the U.K. government proposing changes to the taxation of U.K. residential property valued at £2m or more. Among other things, companies resident outside the U.K. will, for the first time, be liable to capital gains tax (CGT) on such property, with effect from April 6, 2013. The measures in the draft legislation include CGT at a fixed rate of 28% on disposals of U.K.
