Important Update for Offshore Workers regarding offshore decommissioning and well abandonment activities

HMRC has recently indicated that it considers offshore decommissioning and well abandonment activities to be a "relevant use" for the purposes of the Seafarers' Earnings Deduction (SED).

This is a significant development for offshore workers and could affect claims made by individuals serving on vessels involved in decommissioning operations.

At SK Tax Service, we do not agree that permanent well abandonment and decommissioning activities amount to the exploitation of mineral resources and are currently challenging HMRC's interpretation. Currently, many claims are being held pending HMRC's review of this issue.

If you have worked on offshore decommissioning vessels and are unsure how this may affect your SED claim, please get in touch with our team.