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Income taxes (Tables)
 12 Months Ended
Dec. 31, 2018
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, 2018
 
Pre-tax
(loss)/
income
$’000
 
Current
$’000
 
Deferred
$’000
 
Total
$’000
 
 
 
 
 
 
 
 
 
UK
 
(25,025
)
 
3,893

 
—

 
3,893

Bermuda
 
(7,161
)
 
—

 
—

 
—

United States
 
4

 
832

 
(1,789
)
 
(957
)
Brazil
 
3,863

 
1,810

 
51

 
1,861

Italy
 
15,748

 
5,701

 
(7,328
)
 
(1,627
)
Peru
 
14,876

 
5,044

 
(298
)
 
4,746

Rest of the world
 
(25,919
)
 
2,926

 
3,141

 
6,067

 
 
 
 
 
 
 
 
 
 
 
(23,614
)
 
20,206

 
(6,223
)
 
13,983

 
 
 
 
 
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
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:
 
 
2018
 
2017
 
2016
Year ended December 31,
 
$'000
 
$'000
 
$'000
 
 
 
 
 
 
 
(Losses)/earnings before provision for income taxes and earnings from unconsolidated companies, net of tax
 
(23,614
)
 
(28,303
)
 
40,756

 
 
 
 
 
 
 
Tax (benefit)/charge at statutory tax rate of 19%, 19.25% and 20%
 
(4,487
)
 
(5,448
)
 
8,151

 
 
 
 
 
 
 
Exchange rate movements on deferred tax
 
657

 
2,400

 
(1,785
)
Notional interest deductions
 
(1,289
)
 
(960
)
 
(1,812
)
Imputed cross border charges
 
815

 
763

 
995

Disallowable goodwill impairment charges
 
1,093

 
—

 
—

Other permanent disallowable expenditure
 
5,159

 
3,664

 
483

Change in valuation allowance
 
5,547

 
2,215

 
4,876

Difference in taxation rates
 
8,316

 
13,874

 
9,509

(Reduction in)/additional deferred tax liability in respect of VIE
 
(1,732
)
 
7,263

 
—

Change in provisions for uncertain tax positions
 
46

 
160

 
(3,350
)
Change in tax rates
 
—

 
(19,807
)
 
(643
)
Transition tax in U.S.
 
(190
)
 
2,330

 
—

Other
 
48

 
100

 
(56
)
 
 
 
 
 
 
 
Provision for income taxes
 
13,983

 
6,554

 
16,368

 
 
 
 
 
 
 
 
Schedule of net deferred tax liabilities
The following summarizes Belmond’s net deferred tax assets and liabilities:
 
 
2018
 
2017
 
2016
Year ended December 31,
 
$’000
 
$’000
 
$’000
 
 
 
 
 
 
 
Operating loss carry-forwards
 
54,465

 
58,185

 
82,292

Pensions
 
—

 
95

 
255

Stock options
 
680

 
703

 
3,617

Other
 
9,226

 
8,184

 
8,283

Less: Valuation allowance
 
(50,951
)
 
(49,337
)
 
(70,241
)
 
 
 
 
 
 
 
Net deferred tax assets
 
13,420

 
17,830

 
24,206

 
 
 
 
 
 
 
Other
 
(6,763
)
 
(4,817
)
 
(5,032
)
Property, plant and equipment
 
(110,609
)
 
(128,206
)
 
(141,231
)
 
 
 
 
 
 
 
Deferred tax liabilities
 
(117,372
)
 
(133,023
)
 
(146,263
)
 
 
 
 
 
 
 
Net deferred tax liabilities
 
(103,952
)
 
(115,193
)
 
(122,057
)
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, 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, December 31, 2016
 
318

 
249

 
21

 
48

At December 31, 2018, the total amounts of unrecognized tax benefits included the following:
 
 
Total
 
Principal
 
Interest
 
Penalties
Year ended December 31, 2018
 
$’000
 
$’000
 
$’000
 
$’000
 
 
 
 
 
 
 
 
 
Balance, January 1, 2018
 
532

 
438

 
26

 
68

Additional uncertain tax provision identified during the year
 
128

 
109

 
1

 
18

Increase to uncertain tax provision on prior year positions
 
21

 
9

 
12

 
—

Decreases as a result of expiration of the statute of limitations
 
(103
)
 
(78
)
 
(8
)
 
(17
)
Foreign exchange
 
(25
)
 
(20
)
 
(2
)
 
(3
)
 
 
 
 
 
 
 
 
 
Balance at December 31, 2018
 
553

 
458

 
29

 
66

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 at 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

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