Leading accountant and shipping adviser BDO says that, while the Spring Statement by the UK Chancellor of the Exchequer did not contain any shipping-specific initiatives, it did include some measures which could be of interest to the maritime sector. Of particular interest to the offshore sector, the government called for evidence to identify what should be done in order to further strengthen the position of Scotland and of the UK in general as a global hub for decommissioning.
Detailed legislation was published in respect of the new capital allowances for structures and buildings which was announced in the UK Budget 2018. This relates to a new 2% capital allowance which will be available in respect of the construction costs (including land alteration and improvement expenditure) of new commercial non-residential structures and buildings. Very broadly, buildings must be used for a commercial purpose. This will apply where the contract is entered into on or after 29 October 2018.
A policy paper was also published on tackling tax evasion, tax avoidance and other forms of non-compliance, with the government reiterating that it will continue to build on the steps already taken. Another policy paper, ‘No Safe Havens’, was meanwhile published reiterating the government’s commitment to ensuring offshore tax compliance and preventing unfair outcomes, using international collaboration and the exchange of information
BDO tax partner Sue Bill says, “Once again, the absence of any shipping-specific measures is good news for the maritime sector, which continues to benefit from a tax regime which provides certainty and stability.”
The BDO Shipping & Transport team has extensive experience delivering accountancy, tax and advisory services to the sector worldwide. BDO delivers key information and insights to the shipping community, including the annual OpCost report, the quarterly Shipping Confidence Survey and a host of thought leadership on topical issues, such as regulatory developments and market conditions.