Seafarers Earnings Deduction: example of eligible period
Section 378 ITEPA 2003
Section 378(3) defines a combined period as consisting of three consecutive periods, A,B and C where:
- A is a period of consecutive days of absence from the United Kingdom or is itself a combined period
- B is a period of not more than 183 days
- C is a period of consecutive days of absence from the United Kingdom.
It is a condition that at least half of the days in the combined period must be days of absence from the United Kingdom. See EIM33005 for further guidance.
The following example shows how combining periods of absence works in practice.
|Dates||Days of absence||UK days||Combined period A+B+C||Running total of UK days||1/2 limit for UK days||Period B not to exceed 183 consecutive days|
|1 January 2004 to 31 March 04||91 (A)|
|1 April 2004 to 31 May 2004||61 (B)||OK|
|1 June 2004 to 31 August 2004||92 (C)||244 (A)||61||122 OK|
|1 September 2004 to 31 October 2004||61 (B)||OK|
|1 November 2004 to 31 January 2005||92 (C)||397 (A)||122||198 OK|
|1 February 2005 to 31 March 2005||59 (B)||OK|
|1 April 2005 to 30 June 2005||92 (C)||548||181||274 OK|
- The first combined period from 1 January 2004 to 31 August 2004 is less than 365 days so by itself does not form an eligible period.
- The extended combined period from 1 January 2004 to 31 January 2005 is 365 days or more so does form an eligible period.
- The extended combined period from 1 January 2004 to 30 June 2005 further extends the eligible period.