Income Tax Act 2007 section 1013

Territorial sea of the United Kingdom

Section 1013 establishes that the territorial sea of the United Kingdom is treated as part of the United Kingdom for income tax purposes.

• The United Kingdom's territorial sea is deemed to be part of the United Kingdom for all income tax purposes.
• This means that activities, income, or transactions occurring within the territorial sea are treated as taking place within the United Kingdom.
• The territorial sea generally extends up to 12 nautical miles from the coastline baseline.
• This provision ensures consistent tax treatment for economic activities conducted in UK territorial waters, such as shipping, fishing, or offshore operations close to shore.