Shipping continues to enjoy stable UK tax regime

Among the changes introduced by the UK Budget 2018 which could have implications for the shipping and offshore maritime industries was a decision to increase the Annual Investment Allowance (AIA) from £200,000 to £1m per annum for all qualifying investments in plant and machinery made between 1 January 2019 and 31 December 2020. It will be important plan for any large plant and machinery expenditure accordingly. This is accompanied by a reduction in the rate of writing-down allowances for special-rate pool assets from 8% to 6% per annum on a reducing balance basis. Unless the position is clear, it may be necessary to obtain specific advice concerning when expenditure is regarded as having been incurred.

Meanwhile a new 2% capital allowance is available in respect of the construction costs of new commercial non-residential structures and buildings, including land alteration and improvement costs, which applies to contracts entered into on or after 29 October 2018.

Overall, shipping and offshore maritime continue to enjoy a stable UK tax regime.
Source: Moore Stephens