§ Mr. Skeetasked the Chancellor of the Exchequer what he assesses to be the yield of tax following the withdrawal of relief from merchant seamen spending more than 30 days outside the jurisdiction; how many seamen are likely to be involved; and if he will assess the effect of those earning at the lowest rates of pay.
§ Mr. MooreThe proposed halving of the 25 per cent. deduction from foreign earnings will produce a yield of about £10 million in respect of 1984–85 in relation to merchant seamen and the withdrawal of the balance of the relief will lead to a further yield of about the same size for 1985–86. Some 45,000 merchant seamen will be affected. The effect of the proposed halving, in 1984–85, of the 25 per cent. deduction from foreign earnings on an adult SG2 rating earning £126 per week will be an increase in tax of £2.59 per week — taking an average qualifying proportion for the relief, now provisionally estimated at 200/365. However, the combined effect of this and the increases in personal allowances proposed in my right hon. Friend's Budget will be to increase the weekly tax bill of a married rating earning £126 per week by 51p in 1984–85.
§ Dr. Glynasked the Chancellor of the Exchequer if he will estimate the total loss to seamen as a result of the proposed cuts in earnings following his Budget proposals concerning overseas earnings tax relief on seafarers; and if he will make a statement.
§ Mr. MooreThe proposed halving of the 25 per cent. deduction from foreign earnings will produce a yield of about £10 million in respect of 1984–85 in relation to seafarers. The withdrawal of the balance of the relief proposed for 1985–86 will lead to a further yield for that year of about the same size. However, when the proposed250W increase in personal allowances is taken into account, the overall effect of the Budget proposals on seamen as a group will be rather less than these figures suggest.
§ Sir David Priceasked the Chancellor of the Exchequer what it would cost to maintain the relief from income tax under case I of schedule E in relation to short or intermittent absences abroad for registered British seafarers.
§ Mr. Moore[pursuant to his reply, 26 April 1984, c. 604]: At 1984–85 levels of earnings and so on, it is estimated that the cost would be about £10 million in respect of 1984–85 and £20 million in respect of 1985–86 and later years.