EMEA News
Baltic Exchange Voices Support for UK's Non-Domiciled Shipowners
The Baltic Exchange Wednesday highlighted in an emailed statement the contribution made to the United Kingdom (UK) economy by foreign ship-owners who are residents and claim "non-domiciled" status.
The Baltic Exchange's comments were made in response to a pledge made by the UK's main opposition party in the run up to a May general election.
Labour party leader Ed Miliband said his party would abolish a "200-year-old loophole" in the UK's system of taxation.
However, The Baltic Exchange said the way that "non-domiciled" individuals are taxed is a "refined system that has been under constant review since its inception."
Domicile is a UK legal concept outside of its taxation system.
However, long term, UK-resident individuals with the status are taxed only on their income derived from the UK subject to certain conditions.
"Shipowners who reside in the UK but whose global businesses are not subject to UK tax, contribute between one and two billion pounds per annum in revenue to the UK maritime business services sector (lawyers, brokers, financiers and insurers)," said CEO Jeremy Penn.
"All this revenue, which is in addition to the substantial tax paid by the non-domiciled residents, will disappear if the non-domiciled tax concession is abolished."
In February, The Baltic Exchange's Baltic Dry Index hit its lowest point since inception, with one carrier, Copenship, filing for bankruptcy in what it described as an "extremely bad market."
