HMRC internal manual

Employment Income Manual

Seafarers’ Earnings Deduction: entitlement to the deduction for non-UK resident seafarers: years prior to 2011/12: introduction

Section 378(1)(a) ITEPA 2003

From 6 April 2011 a non-UK resident seafarer who is resident in an European Union (EU) or European Economic Area (EEA) State is entitled to seafarers’ earnings deduction (SED). See EIM33010.

Entitlement to SED for years before 2011/12

The change in the law to extend entitlement to SED to seafarers resident in EU/EEA states for 2011/12 onwards did not include any reference to retrospective entitlement for years before 2011/12. Consequently it was HMRC’s practice not to admit claims to SED from EU/EEA seafarers for those years.

HMRC has decided now to accept claims for SED for tax years before 2011/12, by seafarers who were not UK resident or ordinarily resident in the relevant tax years, should be allowed where the claims are made within the same time limits that apply for making such claims by those who were UK resident or ordinarily resident in the relevant tax year.

Further guidance regarding the detail of claims to SED is available as follows -

* how to submit a claim to SED ([EIM33012]( for relevant years prior to 2011/12;
* the evidence required to support a claim to SED ([EIM33013](; and
* the years which may be subject to claim? ([EIM33014](