Seatax
What is a ‘ship’ for Seafarers’ Earnings Deduction?
A ship is not defined in the SED legislation. HMRC look for a vessel capable of navigation under its own power. Offshore installations used in oil and gas are specifically not ships. Dry dock can also stop a vessel being a ship if the hull is breached and it is not capable of being used in navigation.
Pain
If it floats, people call it a ship. HMRC does not.
Solution
We classify the unit against Schedule 27 and HMRC practice before we claim.
Usually not ships
Fixed production platforms, floating production platforms, floating storage units, FPSOs, mobile offshore drilling units.
Often ships
Merchant cargo and tanker vessels, many cruise ships, yachts, ferries, and navigating support vessels — subject to the other SED tests.
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
Is a yacht a ship?
Usually yes if it navigates under its own power. Yacht crew still need the eligible period, residence and foreign-port tests.
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