June Budget – Seafarer’s Earnings
The coalition Government have confirmed that a measure announced in the last Pre-Budget Report will be included in the next Finance Bill. The measure will benefit EU and European Economic Area (EEA) residents who work as seafarers and currently pay UK tax. With effect from 6 April 2011 the existing relief available to UK residents will extended to EU and EEA residents.
The Seafarers’ Earnings Deduction provides for 100% UK tax relief for earnings generated by seafarers wholly or partly outside the UK, during an eligible period.
This measure is being introduced to ensure that the UK provisions are compatible with the EU treaty.