Moore Stephens Welcomes UK Tonnage Tax Revision

Thursday, October 13, 2011
Sue Bill, Moore Stephens

Accountant and shipping adviser, Moore Stephens, has welcomed the decision of Her Majesty’s Revenue & Customs (HMRC) to revise, as promised, its UK Tonnage Tax Manual to at least partly restore, on an interim basis, the pre-2009 interpretation of the strategic and commercial management tests.

 

Moore Stephens has been working for some time with the shipping industry, and in particular with the Chamber of Shipping, in campaigning for HMRC to reconsider its 2009 reinterpretation of the tonnage tax rules. This reinterpretation created a lack of certainty and sent completely the wrong signals to international shipowners who had relocated to the UK to take advantage of its tonnage tax regime.

 

Moore Stephens tax partner Sue Bill says, “The HMRC changes to its reinterpretation of the strategic and commercial management test are very good news for a number of shipowners who are in the UK tonnage tax regime. At the moment, this is only an interim measure. However, although the location of technical management in the UK is no longer a pre-requisite for qualification for the regime, the current interim guidance emphasises the need for a company to review its activities in light of EU guidelines and comments that the management activities must contribute substantially to economic activity and employment within the EU. Therefore it is not clear from the latest guidance whether the pre-2009 position has been completely restored. But this move does aim to address the immediate concerns of most shipowners in relation to the 2009 reinterpretation, and a full consultation will be carried out.

 

“The revised guidance includes some helpful comments regarding the application of the strategic and commercial management tests where ships are time-chartered in.

 

“The UK government has recently stated that it is keen to support the UK maritime sector. This is very good news. It is important that progress continues to be made and that the consultation process results in a consensus regarding the future position. The government should take the opportunity to consider other areas of the tonnage tax regime where changes to the rules would assist the UK shipping sector, which is currently facing difficult trading conditions and competition from other jurisdictions.”

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

People & Company News

US Coast Guard Travelling Inspectors' Centenary

July 2014 marked the 100th anniversary of the traveling inspection staff, originally created under the Steamboat Inspection Service. These travelers are highly

Pumps Reach Sinking Shrimper Just in Time

A commercial fishing vessel from Brownsville is slowly making its way back to port, thanks to some quick actions by its crew and Coast Guard units, informs the US Coastguard,

Orica Fined Heavily for Australian Pollution Incidents

Orica Australia Pty Ltd has been convicted and penalised $768,250 in relation to charges brought by the NSW Environment Protection Authority (EPA) for pollution

Finance

Orica Fined Heavily for Australian Pollution Incidents

Orica Australia Pty Ltd has been convicted and penalised $768,250 in relation to charges brought by the NSW Environment Protection Authority (EPA) for pollution

DMR Publish Latest Container Census Report

Drewry Maritime Research (DMR) says it has just published it's latest Container Census report, providing a wealth of information on the container equipment market.

Höegh LNG Partners Launch IPO

Höegh LNG Partners LP ("Partnership"), a Marshall Islands limited partnership formed by Höegh LNG Holdings Ltd. ("Company"), announced today that it has commenced an initial public offering of 9,

Government Update

Mass Flow Metering System for MFO delivery in Singapore

As the world's leading bunkering port Singapore is to provide quality bunkering services to vessels lifting bunkers in the port. The use of the Mass Flow Metering

Iraq's Kurds Have Right to Sell Oil While Squeezed by Baghdad

Iraq's Kurdish region has the right to keep selling oil as long as the Baghdad government keeps cutting its budget, the head of the Kurdish parliament's energy committee said on Tuesday,

Russia, China May Develop Floating Nuclear Power Plants

Russia and the world's top energy user China may jointly develop six floating nuclear power plants (NPPs), Russia's nuclear export body said on Tuesday, a further

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Offshore Oil Port Authority Salvage Ship Repair Shipbuilding / Vessel Construction 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: 0.1545 sec (6 req/sec)