More gloom and doom following the UK changes in capital allowances on 1 January, 2011. Shipping accountants Moore Stephens say that tax advantages on capital expenditure on ships could be hard hit by the changes. Hitherto, ships outside the tonnage tax were excluded from the long life asset regime and therefore the normal rate of writing down allowances applied. This is no longer the case as of 1 January.
Expenditure on ships incurred on or after 1 January 2011 is no longer excluded from the regime, under which the writing-down allowances are considerably lower than those for other assets, Moore Stephens explains. Ships acquired prior to 1 January 2011 will continue to be excluded from the long life asset rules.
So there you have it – who knew tax could be so interesting.
