Tonnage Tax Window Opens on Changes

A new window of opportunity to opt to enter the UK's successful Tonnage Tax regime opens July 1, 2005, says leading shipping accountancy firm Moore Stephens. "This is good news for shipowners and operators who didn't opt in the first time, as almost every company in the regime has gained from it," writes Sue Bill, shipping tax partner, in the current issue of Moore Stephens shipping newsletter, the Bottom Line. Bill goes onto qualify her good news, writing, "At the same time, the UK tonnage tax rules have also been amended to meet EU guidelines on state aid to maritime transport."

Bill details new flagging and vessel type rules and concludes, "The UK government commitment is clear from the proposed changes and is good news for the UK shipping sector. The flagging requirement imposed by the EU has been incorporated into the tonnage tax regime as fairly as possible. Look through the tonnage tax window, the view is good."

Also in Bottom Line, David Anstis reviews the EU Ports Directive and warns of new risks to port investments, Chris Chasty looks at EU and other competition authority pressure on shipping pools and Richard Greiner examines how EU rules on bunkers will affect shipowners' costs.