Those who are within the employment of the Crown are not entitled to claim the Seafarers’ Earnings Deduction. Employees of the Royal Fleet Auxiliary fall within the definition of the Crown but have previously been able to claim the Seafarers’ Earnings Deduction on a concessionary basis.
Section 384 of The Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003) will be amended so that Crown employment excludes employment in the Royal Fleet Auxiliary. This measure will take effect on the date that the 2017/18 Finance Bill receives Royal Assent.
Those who are in the employment of the Royal Fleet Auxiliary will benefit from this change and will now have certainty that they can claim the Seafarer’s Earnings Deduction.