Major UK shipping interests band together against tax reforms

The Baltic Exchange, the Chamber of Shipping, Maritime London and the Joint Hull Committee, which represents the Lloyd's and International Underwriters' Association, have called on the British government to abandon proposed changes to the non-domiciled resident tax regime because they will undermine the country's GBP1.5 billion (US$2.9 billion) maritime services sector, reports Maritime Global Net.

Shipping interests believe that planned changes to the tax code will result in a flood of departures from the UK to overseas locations such as Singapore, Dubai, Athens, Copenhagen and New York.
The proposed legislation would increase the cost of international shipping companies' London operations by adversely changing the tax position of long-serving overseas staff as well as creating a considerable reporting burden on non-domiciled residents. The direct tax take from the proposed changes will be neutral or negative because most, if not all, non-domiciled shipping businesses will depart, he said, adding that the indirect damage to overseas earnings and other UK government income would also be substantial.

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