THE BUSINESS EXPANSION SCHEME AND ITS RELEVANCE TO SHIPOWNING

The British "Business Expansion Scheme" (BES) provides investors, entrepreneurs and consumers with a way of funding businesses, giving them up to 60% tax relief on their investments. Investments can be made directly, in individual companies, or through BES funds, which are pools of money that the fund managers then invest in a range of BES companies. When BES was started in 1983, its original provisions did not especially favor the creation of shipping companies, but major changes in two Finance Acts have greatly increased the opportunities in this sector. It is envisaged that many future BES companies will be companies owning only one or two ships, with committed, share-owning crews and very small staffs ashore--an ideal environment for cooperative ventures. The technicalities of forming a company to qualify as a Business Expansion Scheme are discussed and the fortunes of three such companies formed in 1987 are reviewed. The author believes that the scheme represents a major opportunity for seafarers and ex-seafarers to revive a sector of the UK's Merchant Navy.

Media Info

  • Pagination: 13p.

Subject/Index Terms

Filing Info

  • Accession Number: 00656465
  • Record Type: Publication
  • Source Agency: Maritime Technical Information Facility
  • Files: TRIS
  • Created Date: Jul 21 1994 12:00AM