Section 414C — Income Tax (Earnings and Pensions) Act 2003: Reduction in other cases of foreign service as seafarer

Reduction in other cases of foreign service as seafarer 414C 1 This section applies if—

a the payment or other benefit is within section 401(1)(a),

b the employee or former employee is UK resident for the tax year in which the employment terminates, c the service of the employee or former employee in the employment in respect of which the payment or other benefit is received includes foreign service, and d section 414B(2) does not except the payment or other benefit from the application of this Chapter.

2 The taxable person may claim relief in the form of a proportionate reduction of the amount that would otherwise—

a be treated as earnings by section 402B(1), or b count as employment income as a result of section 403.

3 The proportion is that which the length of the foreign seafaring service bears to the whole length of service in the employment before the date of the termination in question.

4 A person's entitlement to relief under this section is limited as mentioned in subsection (5) if the person is entitled—

a to deduct, retain or satisfy income tax out of a payment which the person is liable to make, or b to charge any income tax against another person.

5 The relief must not reduce the amount of income tax for which the person is liable below the amount the person is entitled so to deduct, retain, satisfy or charge.

6 In this section “ foreign seafaring service ” has the same meaning as in section 414B(2).