Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps his Department is taking to attract new maritime businesses to base themselves in the UK.

At Autumn Budget 2021, the Government announced that it would reform the UK’s Tonnage Tax regime to ensure that the British shipping industry remains highly competitive. These reforms came into effect in April 2022 and aim to see more firms basing their headquarters in the UK, using the UK’s world-leading maritime services industry, and flying the UK flag.

As part of these reforms, the Government is reviewing whether to include ship management within scope of the Tonnage Tax regime, and whether the existing limit that can be claimed in capital allowances by organisations leasing ships to Tonnage Tax participants remains appropriate.