Seafarers Allowance and Wind Farms

[Ray Shields]

Does anyone know the status of being able to claim back your tax using the Seafarers Earning Deduction in the UK?

Now, after lots of cases in court, and appeals etc. the definition of a ship or vessel has changed a few times, but generally as soon as you touch seabed or stay located over one place, you are then no longer a ship but an offshore installation.

However, this is only if you are extracting minerals (e.g. oil and gas).

At present, I am onboard a vessel which has been built specifically for installation of wind farms. It is a jack up ship, it propels itself about, it jacks itself up and then it installs the structures. I had initially thought that this would stop being a vessel as soon as it jacked up, however reading through the appeals etc. they talk only about oil and gas.

Therefore, if you are working on a wind farm vessel, even if it jacks itself up, can you then claim it as a ship and count towards SED?

[James McLauchlan]

Barrack-room type thoughts here Ray….

In Norway, the offshore tax legislation appears to be set up for oil & gas. For example, I worked there on a cable maintenance boat laying a cable array in Norwegian waters (actually it was Fjord) and no tax was deemed liable.

To me it would seem that the bulk of UK offshore (oil & Gas) marine tax legislation is centred around vessels involved in oil & gas extraction/production. Until they change the term to an all encompassing ‘Energy Production or Extraction‘ I would say wind farms and associated vessels fall out-with the current O&G offshore tax legislation.

The only thing to watch out for is how far offshore you are working as I do know of some wind farms that are within the 12 mile limit. As you probably know, if you are working within the 12 mile limit then technically you are not offshore and would likely be taxed as if being employed on land working in the construction industry. I’m not sure if being signed onto on a ship/vessel would make any difference in that instance??

For sure taking some kind of financial advice before the event would be the way forward.

[Ray Shields]

In this particular case its offshore Germany so no problems with Uk 12 mile limit 🙂 Of course, it would also mean working 6 months of the year and that isn’t going to happen anytime soon for me, but may help others 😀

I’m sure it will take the taxman a while to catch up with Wind Energy but Im sure as always they will twig on eventually!

[James McLauchlan]

UK tax man may well try and catch on, but it’s nice to note that wind farms are not restricted to the same geographical areas as oil & gas finds 🙂

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