Income Tax (Earnings and Pensions) Act 2003 section 380

Limit on deduction where UK duties etc. make amount unreasonable

Section 380 limits the seafarer's earnings deduction where the seafarer also performs some duties in the United Kingdom during the tax year, to prevent manipulation of earnings to exploit the relief.

• Where a seafarer qualifies for the earnings deduction but also performs some duties in the UK during the tax year, the deduction is restricted
• The deduction is limited to a reasonable proportion of total earnings from the seafaring employment and any associated employments, based on the nature and time spent on duties inside and outside the UK
• Associated employments means jobs with the same employer or with employers who are connected with each other
• The rules for determining whether employers are associated are the same as those used for limiting chargeable overseas earnings under section 24

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