All at sea

The taxpayer claimed the seafarer’s earnings deduction under ITEPA 2003 s 378 et seq in respect of a period spent working on a ship.

During the time the ship had been kept stationary alongside an installation and had been used as a floating hotel or ‘flotel’ housing workers who were employed on the installation.

The ship had not been anchored but had been kept in a near-geostationary location by means of dynamic positioning. HMRC contented that the vessel was not used as a ship during the relevant period but had become an offshore installation.

Bearing in mind the ship had housing units fixed to its deck during the period the Upper Tribunal held that the relief claimed was not due. It concluded that ‘structure’ could be widely defined.

The...