§ Resolved,
That—
§ (1) In section 158 of the Income and Corporation Taxes Act 1988, for the Tables in subsection (2) there shall be substituted—
§ (2) Before that section there shall be inserted—
§ "Foreign earnings deduction for seafarers
§ 192A.—(1) Where in any year of assessment—
- (a) the duties of an employment as a seafarer are performed wholly or partly outside the United Kingdom, and
- (b) any of those duties are performed in the course of a qualifying period (within the meaning of Schedule 12) which falls wholly or partly in that year and consists of at least 365 days,
§ then, in charging tax under Case I of Schedule E on the amount of the emoluments from that employment attributable to that period, or to so much of it as falls in that year of assessment, there shall be allowed a deduction equal to the whole of that amount.
§ (2) In subsection (1) employment 'as a seafarer' means an employment consisting of the performance of duties on a ship (or of such duties and others incidental to them).
145§ (3) For the purposes of this section a 'ship' does not include—
- (a) any offshore installation within the meaning of the Mineral Workings (Offshore Installations) Act 1971, or
- (b) what would be such an installation if the references in that Act to controlled waters were to any waters.
§ (4) Schedule 12 has effect for the purpose of supplementing this section.".
§ (3) The references in the Income and Corporation Taxes Act 1988 to section 193(1) shall be amended as follows—
- (a) in section 19(1), in Case I of Schedule E, the words from"and to section 193(1)" to the end shall be omitted;
- (b) in paragraph 10 of Schedule 11, after "193(1)" there shall be inserted "or 192A";
- (c) in section 132(3) and paragraphs 1, 1A, 2(1), 3(1) and (3), 5 and 6 of Schedule 12, for "193(1)" there shall be substituted "192A".
§ (4) In Schedule 12 to that Act—
- (a) in paragraph 3(2)—
- (i) in paragraph (a) for "62" there shall be substituted "183", and
- (ii) in paragraph (b) for "one-sixth" there shall be substituted "one-half;
- (b) in paragraph 5—
- (i) for "vessel or aircraft" there shall be substituted "ship (within the meaning of section 192A)", and
- (ii) in paragraphs (a) and (b) for "voyage or journey" there shall be substituted "voyage"; and
- (c) paragraphs 3(2A) and 7 shall be omitted.
§ (5) Paragraphs (1) to (4) of this Resolution shall have effect in relation to—
- (a) emoluments attributable to qualifying periods beginning on or after 17th March 1998, and
- (b) emoluments attributable to qualifying periods beginning before 17th March 1998 which are received on or after that date.
§ (6) Nothing in those paragraphs shall affect the question what deduction (if any) falls to be made under section 193(1) of the Income and Corporation Taxes Act 1988 in the case of emoluments attributable to a qualifying period beginning before 17th March 1998 and received before that date.
§ (7) For the purposes of paragraphs (5) and (6) of this Resolution the question whether emoluments are attributable to a qualifying period beginning before 17th March 1998 shall be determined without reference to any arrangements entered into on or after that date.
§ And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.