Budget continues stable tax regime for UK shippingNews
// March 24, 2014
International accountant and shipping adviser Moore Stephens say 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.
Moore Stephens tax partner Sue Bill, said: "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 per cent to 7.5 per cent; 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.”
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