Part 1Income tax, corporation tax and capital gains tax

Income tax and corporation tax

4Seafarers’ earnings

1

Section 378 of ITEPA 2003 (deductions from seafarers’ earnings: eligibility) is amended as follows.

2

In subsection (1)(a), after “relevant taxable earnings” insert “or EEA-resident earnings”.

3

After subsection (5) insert—

6

In this section—

  • “EEA-resident earnings” means section 15 or 27 earnings for a period—

    1. a

      in which the employee is resident for tax purposes in an EEA state (other than the United Kingdom), and

    2. b

      which falls within a tax year in which the employee is not ordinarily UK resident,

  • “resident for tax purposes” means liable, under the law of the EEA state, to tax there by reason of domicile or residence,

  • “section 15 earnings” means general earnings to which section 15 applies, and

  • “section 27 earnings” means general earnings to which section 27 applies.

4

The amendments made by this section have effect for the tax year 2011-12 and subsequent tax years but only in relation to eligible periods beginning on or after 6 April 2011.