Income taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Schedule of provision for income taxes

The provision for income taxes consists of the following:

			Provision for income taxes
Year ended December 31, 2017	Pre-tax (loss)/ income $’000		Current $’000	Deferred $’000		Total $’000
UK	(18,518	)	1,671	(372	)	1,299
Bermuda	(34,873	)	—	—		—
United States	(1,850	)	3,332	(12,987	)	(9,655	)
Brazil	2,193		2,322	(804	)	1,518
Italy	20,265		5,359	972		6,331
Peru	14,367		4,712	248		4,960
Rest of the world	(9,887	)	2,800	(699	)	2,101
	(28,303	)	20,196	(13,642	)	6,554

			Provision for income taxes
Year ended December 31, 2016	Pre-tax (loss)/ income $’000		Current $’000		Deferred $’000		Total $’000
UK	(6,702	)	949		(444	)	505
Bermuda	160		—		—		—
United States	2,681		(1,510	)	(1,978	)	(3,488	)
Brazil	15,303		5,498		(121	)	5,377
Italy	19,971		4,468		1,998		6,466
Peru	13,965		4,261		1,625		5,886
Rest of the world	(4,622	)	3,007		(1,385	)	1,622
	40,756		16,673		(305	)	16,368

			Provision for income taxes
Year ended December 31, 2015	Pre-tax (loss)/ income $’000		Current $’000	Deferred $’000		Total $’000
UK	(18,965	)	1,585	(2,262	)	(677	)
Bermuda	(4,315	)	—	—		—
United States	1,439		1,310	1,698		3,008
Brazil	10,380		2,768	760		3,528
Italy	17,351		4,006	(824	)	3,182
Peru	12,078		3,154	(677	)	2,477
Rest of the world	7,386		4,341	1,182		5,523
	25,354		17,164	(123	)	17,041

Schedule of reconciliation of provision for income taxes

The reconciliation of (losses)/earnings before provision for income taxes and earnings from unconsolidated companies, net of tax at the statutory tax rate to the provision for income taxes is shown in the table below:

	2017		2016		2015
Year ended December 31,	$'000		$'000		$'000
(Losses)/earnings before provision for income taxes and earnings from unconsolidated companies, net of tax	(28,303	)	40,756		25,354
Tax (benefit)/charge at statutory tax rate of 19.25%, 20% and 15% (1)	(5,448	)	8,151		3,803
Exchange rate movements on deferred tax	2,400		(1,785	)	(1,912	)
Notional interest deductions	(960	)	(1,812	)	(1,867	)
Imputed cross border charges	763		995		716
Disallowable goodwill impairment charges	—		—		2,198
Other permanent disallowable expenditure	3,664		483		5,762
Unrecognized tax loss generated on disposal of Hotel Ritz by Belmond	—		—		(16,029	)
Change in valuation allowance	2,215		4,876		16,320
Difference in taxation rates	13,874		9,509		12,948
Adjustment to deferred tax for VIE	7,263		—		—
Change in provisions for uncertain tax positions	160		(3,350	)	279
Change in tax rates	(19,807	)	(643	)	(5,121	)
Transition tax in U.S.	2,330		—		—
Other	100		(56	)	(56	)
Provision for income taxes	6,554		16,368		17,041
(1) The Company migrated its tax residence to the United Kingdom on April 1, 2015, which has a statutory tax rate of 19.25% for the year ended December 31, 2017 (2016: 20%). Prior to that date, the Company was tax resident in Bermuda, which does not impose an income tax. The statutory tax rate of 15% represents the average statutory tax rate for the year ended December 31, 2015.

Schedule of net deferred tax liabilities

The following summarizes Belmond’s net deferred tax assets and liabilities:

	2017		2016		2015
Year ended December 31,	$’000		$’000		$’000
Operating loss carry-forwards	58,185		82,292		89,513
Pensions	95		255		63
Share-based compensation	703		3,617		2,978
Other	8,184		8,283		8,952
Less: Valuation allowance	(49,337	)	(70,241	)	(69,928	)
Net deferred tax assets	17,830		24,206		31,578
Other	(4,817	)	(5,032	)	(7,427	)
Property, plant and equipment	(128,206	)	(141,231	)	(147,265	)
Deferred tax liabilities	(133,023	)	(146,263	)	(154,692	)
Net deferred tax liabilities	(115,193	)	(122,057	)	(123,114	)

Schedule of unrecognized tax benefits

At December 31, 2016, the total amounts of unrecognized tax benefits included the following:

	Total		Principal		Interest		Penalties
Year ended December 31, 2016	$’000		$’000		$’000		$’000
Balance at January 1, 2016	3,678		2,967		656		55
Additional uncertain tax provision identified during the year	78		61		4		13
Increase to uncertain tax provision on prior year positions	4		—		4		—
Uncertain tax provisions settled during the year	(3,308	)	(2,668	)	(640	)	—
Decreases as a result of expiration of the statute of limitations	(124	)	(104	)	(2	)	(18	)
Foreign exchange	(10	)	(7	)	(1	)	(2	)
Balance at December 31, 2016	318		249		21		48

At December 31, 2015, the total amounts of unrecognized tax benefits included the following:

	Total		Principal		Interest		Penalties
Year ended December 31, 2015	$’000		$’000		$’000		$’000
Balance, January 1, 2015	3,437		2,966		416		55
Additional uncertain tax provision identified during the year	78		62		7		9
Increase to uncertain tax provision on prior year positions	236		—		236		—
Decreases as a result of expiration of the statute of limitations	(35	)	(30	)	(2	)	(3	)
Foreign exchange	(38	)	(31	)	(1	)	(6	)
Balance, December 31, 2015	3,678		2,967		656		55

At December 31, 2017, the total amounts of unrecognized tax benefits included the following:

	Total		Principal		Interest		Penalties
Year ended December 31, 2017	$’000		$’000		$’000		$’000
Balance, January 1, 2017	318		249		21		48
Additional uncertain tax provision identified during the year	215		197		1		17
Increase to uncertain tax provision on prior year positions	27		17		7		3
Uncertain tax provisions settled during the year	—		—		—		—
Decreases as a result of expiration of the statute of limitations	(82	)	(69	)	(3	)	(10	)
Foreign exchange	54		44		—		10
Balance at December 31, 2017	532		438		26		68