Analyst criticises UK budget
CHANCELLOR Alastair Darling should have added some extra puff to the UK 2009 budget announced yesterday, leading shipping accountant Moore Stephens told Fairplay reporters today.
“The British government should have made supply and installation ships that carry equipment to and from wind farms eligible for tonnage tax. In fact almost anything that floats and is not sitting in a harbour should qualify,” said Moore Stephens spokesman Philip Parr.
He was referring to a Budget measure to give £525M to offshore wind projects – many of which are being set up in and around UK ports.
Changes to a UK government rule that in many cases only EU-flagged ships qualify for tonnage tax – a flat tax based on tonnage rather than corporation tax which is based on earnings – should have been included in the Budget too, said Parr. “The flagging rules need to be more flexible. Too many vessels fall outside the ruling,” he said.
Meanwhile the EU will issue new guidelines on ship management companies that qualify for tonnage tax in June. “It will cover the tax’s application to the crews and technical managers of ships. Under the current 2004 guidelines on state aid to maritime transport, only full managers ... those who are in charge of both technical and crew management are eligible.”
Ship management is a common practice in Cyprus but also applies to the UK, Denmark, Germany, Belgium and the Netherlands.