Moore Stephens Rues Missed Opportunity

Monday, December 17, 2012

International accountant and shipping consultant Moore Stephens says it is regrettable that changes announced for inclusion in the UK Finance Bill 2013 have failed to remove exchange rate distortions from the calculation of capital gains on ships.
 

Currently, all capital gains and losses subject to UK corporation tax are calculated by reference to sterling, with the result that capital gains and losses arising on non-sterling assets, including certain ships, can be significantly distorted by exchange rate fluctuations.  


In order to avoid such distortions, the UK government has now proposed changes to these rules so that capital gains and losses in some cases can be calculated in a currency other than sterling.  Under the proposed changes, where a company has a non-sterling functional currency, capital gains and losses will in future be calculated in the company’s functional currency.  But this will only apply to shares and not to physical assets.


UK resident shipowning companies are subject to potentially very large distortions due to exchange rate fluctuations when calculating capital gains or losses on their ships. The rule changes are relevant for UK companies that are not in the UK tonnage tax regime, or that have some ships wholly or partly outside tonnage tax.  They will also be relevant for companies owning chargeable assets other than ships which are subject to exchange rate fluctuations by reference to sterling.


Moore Stephens tax partner Sue Bill explains, “To its credit, the UK government has acted to remove exchange rate distortions in respect of capital gains on shares.  It has also acknowledged representations made in respect of oil industry assets, engines, and aircraft, as well as ships and has noted that this is an area which could form the basis of further work. But it has not yet acted to remove exchange rate distortions when calculating capital gains on ships. Moore Stephens made representation to the government that the proposed changes to the existing rules should apply to ships as well as to shares, so that any calculations are made in the company’s functional currency. Despite this, the proposed rules for the Finance Bill 2013, which were published on 11 December, still only relate to shares.”  

Maritime Reporter July 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

Coast Guard Medevacs Seafarer From Tanker off Galveston

A Coast Guard rescue helicopter crew medevaced a 32-year-old crewmember off an Italian-flagged tanker Wednesday, after he suffered an injury from a snapped fender

USCG Rescue Fisherman from Western Lake Erie

The Coast Guard rescued a fisherman from western Lake Erie after he launched an emergency distress flare Wednesday afternoon, near South Bass Island, Ohio. The

Chariot Agrees Brazil Farm Out with AziLat

Chariot Oil & Gas Limited, the Atlantic margins focused oil and gas exploration company, announced that its wholly owned subsidiary, Chariot Brasil Petróleo e Gás Ltda.

Ship Sales

UK's Condor Buys Austal 102 Fast Ferry

Condor Ferries says it has completed purchase of the Austal 102, a state-of -the-art high speed ferry which will operate between the Channel Islands and the UK.

Star Bulk to Acquire 34 Drybulk Vessels

Star Bulk entered into a definitive agreement with Excel Maritime Carriers Ltd., and as a result, will acquire 34 drybulk vessels for an aggregate of 29.917 million

Incat Crowther Launches Ferries for Sydney

Incat Crowther announced the launch of Mary Reibey and Annabelle Rankin, the second and third in a series of 24m catamaran passenger ferries for Captain Cook Cruises.

Finance

Foster Wheeler to Supply Heat Recovery Steam Generator In Mexico

Foster Wheeler AG (Nasdaq:FWLT) announced today that a subsidiary of its Global Power Group has been awarded a contract by Iberdrola, for the design and supply

EMGS - Settlement of the Convertible Bond Loan to North Energy

Divestment fully in line with ABB’s commitment to continuous portfolio optimization. ABB has divested five businesses with limited synergies in the past 11 months raising about $1 billion.

Standard Chartered Private Equity invests $ 75 mi in Topaz

Topaz Energy and Marine (“Topaz”), a leading offshore support vessel company with primary operations in the Caspian, Middle East, West Africa and Subsea operations

Energy

Foster Wheeler to Supply Heat Recovery Steam Generator In Mexico

Foster Wheeler AG (Nasdaq:FWLT) announced today that a subsidiary of its Global Power Group has been awarded a contract by Iberdrola, for the design and supply

EMGS - Settlement of the Convertible Bond Loan to North Energy

Divestment fully in line with ABB’s commitment to continuous portfolio optimization. ABB has divested five businesses with limited synergies in the past 11 months raising about $1 billion.

Chariot Agrees Brazil Farm Out with AziLat

Chariot Oil & Gas Limited, the Atlantic margins focused oil and gas exploration company, announced that its wholly owned subsidiary, Chariot Brasil Petróleo e Gás Ltda.

News

Coast Guard Medevacs Seafarer From Tanker off Galveston

A Coast Guard rescue helicopter crew medevaced a 32-year-old crewmember off an Italian-flagged tanker Wednesday, after he suffered an injury from a snapped fender

USCG Rescue Fisherman from Western Lake Erie

The Coast Guard rescued a fisherman from western Lake Erie after he launched an emergency distress flare Wednesday afternoon, near South Bass Island, Ohio. The

ST Engineering Singapore's Sole Ranker in Forbes' List

Singapore Technologies Engineering Ltd (ST Engineering) announced that it is the only company in Singapore to make it to Forbes’ list of The World’s Most Innovative Companies.

Government Update

Lloyd’s Register's New, Consolidated, Rules for Offshore Units

Lloyd’s Register has launched its new Rules for Offshore Units in one single document following an in-depth consultation with industry. It signals a move by

High Bids in Western GofM Lease Sale

U.S. Government agency BOEM informs that Western Gulf of Mexico Lease Sale 238 attracted US$109,951,644 million in high bids for 81 tracts covering 433,823 acres on the U.

GoM Sale Yields $110m in High Bids

As part of President Obama’s all-of-the-above energy strategy to continue to expand safe and responsible domestic energy production, today’s Western Gulf of Mexico Lease Sale 238 attracted $109,

Logistics

Hiab to Present Sustainable Technology Load Handling at Elmia Lastbil Fair

Hiab, part of Cargotec, will showcase its latest sustainable technology of load handling at the Elmia Lastbil fair in Sweden. The presented products include

Clarksons Appoint New Prospective Chairman

Leading shipping services group, Clarkson PLC, says that James Hughes-Hallett will join the Board as a Non-Executive Director with immediate effect and will take

SC Ports’ Earnings, Volumes Surpass Plans

July cargo volumes deliver strong start to new fiscal year SC Ports Authority reported 2014 fiscal year-end operating earnings of $14.3 million, 20.7 percent over the organization's financial plan.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Offshore Oil Port Authority Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.3001 sec (3 req/sec)