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Union Jack fishing boat: preferential treatment planned
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iconphotomedia / Getty Images
For decades, shipowners had one goal above all: to register their ships under the flag of convenience in order to save costs.
Will British shipping companies change that anytime soon?
After the country leaves the EU, the government in London is trying to make the Union Jack more attractive.
According to government plans, ships flying the flag of the United Kingdom can hope for tax breaks in the UK in the future.
"Now that we have left the EU, it is time for us to help the British shipping industry to grow and survive in the global market," said Finance Minister Rishi Sunak, according to a statement before the official budget presentation.
Relief for climate-friendly shipping companies
From April 2022, shipping companies operating under the Union Jack will therefore be given preferential treatment for applications for what is known as tonnage taxation.
With this method, the tax burden on companies is not calculated on the basis of profits, but on the carrying capacity of their ships.
The flag that a ship wears sends an important signal about the laws and regulations a company is committed to, the press release said.
In addition, shipping companies that contribute to the achievement of Great Britain's climate targets should have better chances of tax breaks in the future.
These include research missions or ships that lay cables to wind farms.
Great Britain wants to attract shipowners with the relief and at the same time protect hundreds of thousands of jobs in the shipping sector.
apr / dpa