UK Budget 2014 Good News for Shipping: Analysts

MarineLink.com
Wednesday, March 19, 2014
Chancellor of the Exchequer: Rt Hon George Osborne MP: Official photo

The UK government’s Budget 2014, issued on 19 March 2014, is good news for UK shipping as it ensures the continuation of a stable UK tax regime for shipping, as has been the case for the past few years, according to international accountant and shipping adviser Moore Stephens.

Moore Stephens tax partner Sue Bill says, “Overall, Budget 2014 is fairly neutral for shipping.  The main surprise is the restriction of the proposed rules on capping the amount of tax relief for intra-group leasing payments for large offshore oil and gas assets under bareboat charters to certain assets only, reducing the impact on the shipping sector.  The scope of the measure will be limited to drilling rigs and offshore accommodation vessels. All other vessels, including FPSOs, seismic vessels and heavy lift vessels, will be excluded.  

“Following consultation with industry, a number of other changes have also been made to the proposed rules; the government will review the impact of the measure a year after implementation; the cap on the bareboat deduction will be increased from 6.5 percent to 7.5 percent; and the pro-rata calculation will be based on worldwide use of the vessel.  Draft legislation will be published on 1 April 2014, when the measure will come into effect.”

A number of other announcements were made in the Budget which will affect the UK’s oil and gas sector. Sue Bill explains, “The Treasury will review the oil and gas fiscal regime to ensure that it continues to incentivise economic recovery, the government will be consulting on a new allowance to support investment in ultra-high-pressure, high-temperature projects, and it will work with industry to ensure that the UK has the right skills to benefit from the country’s oil and gas resources.

“Other measures which may be of interest to UK shipping groups include the government’s decision to extend the UK tax rules applying to high-value UK residential property held by non-natural persons, so that they will also apply to properties worth between £500,000 and £2 million. Stamp Duty Land Tax (SDLT) will apply at 15 percent on acquisition of a residential property, and there will be an annual tax on enveloped dwellings (ATED), and capital gains tax at 28 percent on any gain on disposal. 

“Finally, the government has continued to emphasise its commitment to tackling tax avoidance and aggressive tax planning on the part of large businesses exploiting international tax rules in order to avoid paying tax, for example, by manipulating the UK transfer pricing rules or exploiting double tax treaties.  Additional anti-avoidance rules have been announced. For example, where companies transfer profits within a group in order to obtain a corporation tax advantage, the position will be as though the transfer had not taken place.  Further rules will be introduced to prevent the artificial use of dual contracts by non-domiciled individuals. “

Source: Moore Stephens

 

Maritime Reporter June 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Meyer Turku Wins TUI Cruises Order for 2 Ships

TUI Cruises GmbH and Meyer Turku Oy signed an agreement for two cruise ships. This order further strengthens the order book of the shipyard, which contains now a high work load until the year 2020.

Oranjewerf Ship Repair becomes Damen Shiprepair Oranjewerf

On 1 July 2015, Oranjewerf Ship Repair, which joined Damen Shipyards Group in 1989, will officially change its name to Damen Shiprepair Oranjewerf. This name

Shell Steps Closer to Arctic Drilling

The U.S. Fish and Wildlife Service authorized the nonlethal, incidental, and unintentional take of small numbers of polar bears and Pacific walrus that result

Offshore

Cargoship Disabled and Grounded in Dardanelles

General cargo vessel Ibrahim Konan  (7,618 dwt, built 2008) today (July 1) suffered rudder failure and ran aground in Dardanelles in front of Eceabat in Turkey,

Motion Compensation Solution for Solan Field

Ampelmann provides access solution for commissioning of the Solan project in West of Shetland   Motion compensated access solutions developer Ampelmann informs

US Issues Potential Setback to Shell's Arctic Drilling

The Obama administration issued a potential setback to Royal Dutch Shell's  Arctic oil exploration plans on Tuesday, telling the company that established wildlife

Finance

Transnet Awards Bid for Cape Town Cruise Terminal

Transnet National Ports Authority awarded the V&A Waterfront (Pty) Ltd the status of Preferred Bidder for the development of a cruise terminal at the Port of Cape Town, Transnet said on Tuesday.

Samsung Bags $4.7bn Order for 3 FLNG from Shell Gas

South Korean shipbuilder Samsung Heavy Industries Co. as won a 5.2 trillion won (US$4.7 billion) order to build three floating liquefied natural gas (FLNG) facilities, reports Yonhap.

FLEX Acquires LNG Assets from EXMAR

Nicolas Saverys-led Exmar has agreed to integrate its LNG assets and infrastructure with those of John Fredriksen’s Geveran and Flex LNG under a new USD 2.3 billion company – Exmar LNG Ltd.

Vessels

Meyer Turku Wins TUI Cruises Order for 2 Ships

TUI Cruises GmbH and Meyer Turku Oy signed an agreement for two cruise ships. This order further strengthens the order book of the shipyard, which contains now a high work load until the year 2020.

Samsung Bags $4.7bn Order for 3 FLNG from Shell Gas

South Korean shipbuilder Samsung Heavy Industries Co. as won a 5.2 trillion won (US$4.7 billion) order to build three floating liquefied natural gas (FLNG) facilities, reports Yonhap.

Cargoship Disabled and Grounded in Dardanelles

General cargo vessel Ibrahim Konan  (7,618 dwt, built 2008) today (July 1) suffered rudder failure and ran aground in Dardanelles in front of Eceabat in Turkey,

Government Update

Monopiles Terminal to Be Built in Rotterdam

Sif and Verbrugge to build terminal for offshore wind energy on Maasvlakte 2   Sif Group, Verbrugge International and the Port of Rotterdam Authority have signed

US Issues Potential Setback to Shell's Arctic Drilling

The Obama administration issued a potential setback to Royal Dutch Shell's  Arctic oil exploration plans on Tuesday, telling the company that established wildlife

Ex-BP Engineer Deserves New Gulf Spill Trial -US Appeals Court

A former BP Plc engineer deserves a new trial on an obstruction of justice charge related to the 2010 Gulf of Mexico oil spill, a federal appeals court ruled on Tuesday.

Consulting

Beier Radio is now Beier Integrated Systems

For 70 years, Beier Radio has provided engineering, sales, and service for marine electronics around the globe. As the corporation marks its 70th anniversary,

China's State Audit Uncovers Misdeeds in Cosco

Intensifying crackdown on corruption China’s National Audit Office released an audit report for state-run shipping conglomerate Cosco Group in which it has uncovered

New European Inland Waterway Project Underway

Engineering and consulting firms setec and Royal HaskoningDHV have been selected by VNF – the French navigable waterways authority – to jointly provide program

 
 
Maritime Careers / Shipboard Positions Offshore Oil Pipelines Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction 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: 0.1368 sec (7 req/sec)