RG7.7 - General Information: Foreign earnings deduction
EP8146
Up to
16 March 1998 the Foreign Earnings Deduction could
be claimed by all employees, but after that date it is
only available to seafarers. "Seafarers" are
individuals who perform the duties of their employment on a ship. A
"ship" would not include offshore installations such as mobile
offshore drilling rigs.
Only individuals who are resident and ordinarily resident can
claim this deduction.
For periods after 5 April 1993 if a qualifying period
includes a complete tax year do not overlook the possibility
(probability if the individual is not a seafarer or aircrew member)
of the individual being treated as not resident and not ordinarily
resident for the period of absence.
If an individual has been treated as remaining resident and
ordinarily resident under RG1.3, this status may subsequently
change. If the individual is still abroad at the end of the year
after the year of departure, that is after a complete tax year, you
may need to consider the residence status again. You should go back
to RG1.3 and, using the information you have gathered from the tax
return, check that the conditions of RG1.3 are satisfied.
If you have any doubt or difficulty with
- the residence status
- refer to CAR Residency (Residence & Domicile Technical Team) Bootle
- the foreign earnings deduction
- refer to Personal Taxation (Schedule E), Sapphire House, Solihull.
(See EP8146 and SE40106 onwards).
