Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 17 April 2023 to Question 177808 on Economic Situation and Shipping, if he will make it his policy to ensure that the Corporation Tax regime encourages employment of UK resident seafarers on the vessels qualifying for relief under that regime.

Following reforms to Tonnage Tax announced at Autumn Budget 2021, the Government announced further Tonnage Tax changes to encourage jobs and investment in the UK shipping industry at Spring Budget 2023.

These changes include opening an election window to allow shipping companies to join or re-join UK Tonnage Tax. They also include expanding the regime to include ship management companies, and increasing the capital allowances limit for lessors of ships into the regime.

To take advantage of Tonnage Tax, shipping companies must strategically and commercially manage ships in the UK and commit to train or underwrite the training of sufficient seafarers to meet a "Minimum Training Obligation" (MTO). Trainees must be ordinarily resident in the UK and either a UK/EEA national or a British citizen from the Channel Islands or Isle of Man.

The Government remains committed to the MTO and encouraging the training of seafarers. In September 2022, the Government increased the support for maritime training (SMarT) funding of Cadet training to 50% from the previous level of 30% for the period April 2022 to September 2024.