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—

  (a)

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

  (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.