Vessel was not stationed

The taxpayer claimed seafarers’ earnings deduction for the years 2001/02 and 2002/03 on the basis the vessel on which he worked at the time – located to the west of Scotland some times and at others in the Asgard gas field in the Norwegian North Sea – should be classed as a ship.

HMRC said it was an offshore installation and the deduction was not due.

The vessel the Regalia was self-propelled and semi-submersible having been originally designed as a subsea diving construction and installation unit.

The First-tier Tribunal found the Regalia was versatile navigating between different places. For the years involved the activities carried out entailed work on the top of a well which meant the vessel carried out ‘the exploitation or exploration with a view to exploitation of mineral resources by means of a well’.

But fact the Regalia moved...