When does a Seafarers Earning Deduction eligible period end?

When does a Seafarers Earning Deduction...

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Hello there

The legislation on SED at s378 ITEPA 2003 says that;

An eligible period means a period consisting of at least 365 days, which is either:

  • a period of consecutive days of absence from the United Kingdom, or
  • a combined period.
  • at least half the days in which are days of absence from the United Kingdom and
  • which consists of three consecutive periods, A, B and C, where:
  • A is a period of consecutive days of absence from the United Kingdom or a period which is itself a combined period
  • B is a period of not more than 183 days and
  • C is a period of consecutive days of absence from the United Kingdom.

My question concerns what a combined period really is and when it stops and you have to start again.

So do I have to stop counting when the combined number of days in the UK goes over 183, or when I hit 365 days, or can I carry on until 183 consecutive days are spent in the UK or the half days rule is broken, and if this is the case does that mean that a single eligible period lasting 10 or 20 years is possible.  Please help I have read and re-read the manuals and the legislation and it seems to be saying three things all at once and only one of them can be right.

Regards

Mackthefork

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Me!
By nigelburge
29th Oct 2013 09:35

Yes!

"or can I carry on until 183 consecutive days are spent in the UK or the half days rule is broken, and if this is the case does that mean that a single eligible period lasting 10 or 20 years is possible."

 

That is exactly right if he continues to be a seafarer all that time.

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By Helen Crowley
29th Oct 2013 10:32

Break it down

I look first at the date of the first trip/voyage and stop on the last date returning to the UK on the last trip. If that is more than 365 days then you have a potential eligible period of more than 365 days. You then need to work through the calculation trip by trip as the calculation resets if you go above 50% UK days in comparison to the total number of days. If you do get a break in the number of days that potential eligible period stops and if less than 365 days then it won't qualify. The calculation then restarts again from scratch on the first date of the next voyage and the earlier trips are not counted towards the 365 rule or the 183 days in/out of the UK.

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