Are there exceptional circumstances rules for the Seafarers Earnings Deduction?

The rules relating to the time an individual can spend inside the UK 12-mile limit when claiming relief under the Seafarer’s Earnings Deduction, do not have any relaxations for circumstances where the individual is unable to work in their usual location, due to circumstances beyond their control. This contrasts with the Statutory Residence Test, which has exceptional circumstances rules, which allow additional days in the UK in this type of situation. 

Therefore, you need to assess your current position in terms of days in hand and when you anticipate being able to resume your normal work. If it looks likely that you will be in the position of having more than 50% of days in the UK, you will need to consider your options: 

• Allow your current claim period to fail, because you are confident that when you are able to resume work you will be able to create a new claim period. In the meantime, the earnings to date will remain tax free because you already have a complete claim period. 
• Seek other work that will take you outside the UK’s 12 mile limit and maintain your clock. 
• Take a holiday outside the UK, somewhere like the Channel Islands, Isle of Man or the Republic of Ireland would be sufficient. A key issue is that the trip must be long enough for the days inside the UK 12 -mile limit to be less than 50% of the total days. While there will be a cost for this, remember by maintaining the successful claim period you are saving tax, so HMRC will effectively be contributing to the cost of your holiday. 

Last updated 11 Mar 2026 | First published 11 Mar 2026

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Nikki Shepherd, FCAA

Nikki joined the personal tax team in 2024. She specialises in dealing with residence matters such as the Worldwide Disclosure Facility, complex personal tax return completion, let property, 60-day CGT returns, seafarers and divers

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