9th March 2024 – 15th March 2024
- LOCAL NEWS
No news reported.
- INTERNATIONAL NEWS
1. London’s non-dom shipowners mull options as UK tax rules tighten
The UK Government has tightened the tax net on foreign businessmen, including foreign shipowners, living in London. Non-domiciled or non-dom status has often been used by wealthy businessmen who live in London but do not consider Britain their permanent home, with foreign income and gains exempted from UK taxation.
However, Chancellor of the Exchequer Jeremy Hunt recently stated in his Budget speech that the “non-domicile” status would be abolished after more than two centuries, with a new tax system based on where people live taking effect from April 2025.
The last big shake-up was in 2017, when a 15-year “cap” was introduced, limiting the number of years a non-dom could benefit under the rules.
From April next year, the tax treatment will change. The changes include:
- Everyone will pay UK tax on their foreign income and gains after living in the country for four years — scrapping the “remittance basis” rule that only taxes money brought into the UK;
- New arrivals will benefit from 100% UK tax relief on foreign income and gains for their first four years;
- A temporary 50% cut in the personal foreign income subject to tax in 2025-26 for non-doms who will lose access to the remittance basis;
- Inheritance tax will also move to a residence-based regime, with the details yet to be confirmed.
Related Publications:
Attachment 1: TradeWinds 14/3 - London’s non-dom shipowners mull options as UK tax rules tighten
Fortune U.K. is overhauling its preferential tax treatment for wealthy foreigners
CNN - Britain raids the pockets of the jet-setting super-rich to raise $3 billion
2. For information | MSCHOA template for information request from ASPIDES
With respect to the request of assistance from the EU Operation ASPIDES in the Red Sea, according to ECSA, shipping companies could use the Maritime Security Centre- Horn of Africa (MSCHOA) template which has been made available recently.
With the MSCHOA now set to be of service to ASPIDES, Merchant Vessels must register to the platform at least 48 hours prior entering the MSCHOA area of responsibility.
Related Publications:
Attachment 2:MSCHOA Template for ASPIDES Protection
Attachment 3: ECSA C-13487 MSWG | For information | MSCHOA template for information request from ASPIDE
3. Changes to UK immigration guidelines impact seafarers’ medical treatment
Britannia’s Club correspondents, Van Ameyde Marine, have notified the club about significant changes to UK Immigration (Border Agency) guidelines which may impact seafarers receiving medical treatment in the UK through the NHS (National Health Service).
In particular, when a crew member falls ill or injured in UK ports, the NHS usually provides medical treatment. In most cases, a seafarer is treated as an “Overseas Visitor (Patient)”, defined as “a person not ordinarily resident in the United Kingdom” by the NHS (Charges to Overseas Visitors) Regulations 2015. After completing the medical assessment and treatment, an invoice is usually issued in the individual’s name, even though the shipowner is liable for paying the medical bill. The seafarer is exempt from paying these charges themselves when treated as an overseas visitor under the NHS scheme.
In an attempt to improve payment efficiency, new legislation is being introduced, making it clear that non-payment could potentially affect the ongoing immigration status of a seafarer.
According to the new guidance published on 19 February 2024, overseas visitors, “qualifying debts” are described as debts relating to single or multiple invoices of £500 or more that have been outstanding for 2 months or more (from date of invoice), if invoiced on or after 6 April 2016 or £1,000 or more (if invoiced between 1 November 2011 and 5 April 2016).
These qualifying debts are reported to the UK Home Office, listed as one of the grounds for visa or entry clearance refusal, potentially affecting UK crew changes for shipowners.
Therefore, Brittania recommends that shipowners settle their NHS bills promptly to avoid any future complications at UK ports.
Related Publications:
Safety4Sea 12/03 - Changes to UK immigration guidelines impact seafarers' treatment
Britannia Pandi 12/03 - Important Changes to UK Immigration Guidelines
4. Leaked Annex IX to the Renewable Energy Directive
According to recent information from ECSA, the European Commission is expected to formally approve the latest version of Annex IX to the Renewable Energy Directive, which has leaked recently, as a delegated act within the upcoming days.
The leaked version of ANNEX IX is detrimental to shipping, since EC intends to differentiate access to biofuels between aviation (part A) and all other sectors including shipping (part B).
In essence, through Annex IX, the aviation sector will have prioritized access to biofuels compared to shipping. This is problematic for two reasons. Firstly, shipping relies on access to biofuels to fully meet the ambitious targets of the FuelEU Maritime Regulation. Secondly, the approach outlined in Annex IX contradicts the communication regarding the 2040 targets, where access to low- and zero carbon fuels for both shipping and aviation is a key political priority.
Since it is a Delegated Act of the European Commission , the European Parliament and the Council cannot amend the content of the Act, but they can reject it during the objection period.
In light of the above, our Union will communicate with the Cyprus Shipping Deputy Ministry to request additional information and their position on this issue.
Related Publication:
Attachment 4: ECSA C-13492 Annex 1 - annex ix leak_29 feb 2024
5. EU / Energy Taxation Directive - exemption of bunkers tax
During the ECSA Ad Hoc Meeting of the Taxation WG on the 14th March 2024, which dealt exclusively with national developments on the revision of the Energy Taxation Directive ( ETD), several associations stated that they received the position of their national administrations in view of the High Level meeting of the European Council on the 26th March 2024.
The Cyprus Administration confirmed that they will maintain their position in favour of the exemption from bunkers tax, in line with the ECSA position, with the same view held by Greece , Malta , Italy , Portugal , Ireland and France.
The draft Summary Records of the ECSA Meeting, contain arguments detailing why the current proposal of the ETD revision is not fit for purpose, which can be used in the communication with national administrations.
An impact assessment study of the Delft University (Netherlands) concludes to maintain the exemption because it is not effective to abolish it, substantiating ECSA’s arguments to work globally on bunker fuels , nor at EU level or national level.
Furthermore, according to ECSA, the file has reached a dead-end in the European parliament due to disagreement between the rapporteur, MEP Johan van Overtveldt, and left leaning groups, on issues like adapting taxation levels to inflation over time, timelines for taxing aviation and maritime fuels and language that could allow nuclear energy to benefit from exemptions and reductions.
The deadlock pushed MEPs to abort their plan to finalise their opinion on this file and the absence of a firm position means that the file should be stuck up to the June’s elections.
Related Publications:
Attachment 5: ECSA C-13497 Annex 1 - ecsa_twg_draftsummaryrecords_14.03.24
Attachment 6: ECSA C-13497 Annex 2 - ecsa submission
Attachment 7: ECSA CE Delft
6. US TREASURY REPORT
The US Treasury Report for all actions reported is hereby attached.
Related Article:
Attachment 8: US Treasury Report for week 9/3/2024 - 15/03/2024
7. PIRACY REPORT
The Piracy Report for all actions reported is hereby attached.
Related Article:
Attachment 9: Worldwide Threat to Shipping (WTS) Report, for the period between 14 February - 13 March 2024
Nothing important to report from ILO and Parliament of Representatives.