Pre-Budget Report – Seafarer’s Earnings
An announcement has been made that 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 be extended to EU and EEA residents.
This measure has been put in place to ensure that the UK provisions are compatible with the EU treaty.
The Seafarers’ Earnings Deduction provides for 100% UK tax relief for seafarers earnings made wholly or partly outside the UK, during an eligible period.