Shipping: Tax Allowances

(asked on 17th November 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent discussions he has had with the Secretary of State for Transport on the effect of covid-19 on the seafarers earnings deduction.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 23rd November 2020

The Seafarers’ Earnings Deduction (SED) entitles seafarers to a 100% deduction from income tax for their foreign earnings in certain circumstances. The deduction is available for an eligible period of at least 365 days provided that a minimum of half of the period is spent outside the UK, and that no more than 183 consecutive days are spent in the UK during that period.

Eligible periods for SED are not bound to the tax year, and seafarers are able to add periods of work abroad to previous, or future, eligible periods. Seafarers that claim SED each year are likely to be able to add work done before COVID-19 restrictions to their previous eligible period, and so are unlikely to lose their SED entitlement.

As Financial Secretary to the Treasury, I have engaged recently with the Parliamentary Under-Secretary of State for Aviation and Maritime on the Seafarers’ Earnings Deduction.

The Government keeps all taxes under review as part of its annual Budget process.

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