Seatax
FPSO and offshore installation tax: why SED often fails
Since 2004 HMRC has tightened what counts as a ship. Floating production, storage and offloading vessels, floating storage units, mobile offshore drilling units and fixed platforms are the classic exclusions. Calling it a ‘vessel’ in the galley does not override the statute.
Pain
You live on a floating unit miles offshore and still get taxed as if you were never a seafarer.
Solution
We apply Schedule 27 and HMRC’s ship list before anyone promises 100% relief.
What usually does not qualify
Fixed production platforms, floating production platforms, FSUs, FPSOs and MODUs. Schedule 27 defines offshore installation by use: wells, gas storage, pipelines, and accommodation for people working those structures.
What might still qualify
A true ship that navigates under its own power, with a qualifying voyage, can still support SED for crew employed on that ship. Dry dock with a breached hull can also stop a ship being a ship for tax.
This page is general information based on published HMRC guidance, not personal tax advice. Seatax will apply the rules to your sea service after you enrol. Fees from £275 including VAT per return.
Questions people ask
I got a refund last year on an FPSO. Am I safe?
A refund is not an agreed claim. HMRC can review later. Get the vessel classified properly now.
Enrol with Seatax
Ready to put your seafarer tax in order?
Fees from £275 including VAT per tax return. Download the pack, or call us and we will deal with your enquiry within 24 hours.