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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4200
Experience:  FCCA FCMA CGMA ACIS
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Good afternoon I was a foreign going seaman for many years

Customer Question

Good afternoon
I was a foreign going seaman for many years and did not pay income tax in terms of uk tax laws. My employer set up an offshore provident fund which I was a part of
I recently changed jobs and I now pay PAYE and enrolled in a UK pension.
I wish to liquidate the offshore provident fund with a view to settle my mortage.
What would the tax implications be if I went ahead with this?
The amount is approx UKP 115000,-
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.
Absolutely nothing; this income was earned and correctly taxed. The fact that as a merchant seaman it did not actually have any deductions is irrelevant, those emoluments had 100% relief from Income Tax (Seafarers Earnings Deduction).
Full details of the allowed deductions can be found here:
https://www.gov.uk/seafarers-earnings-deduction-tax-relief-if-you-work-on-a-ship
The only thing that you should do is warn your bank of the incoming funding from the fund as a precaution against an inquiry over possible money laundering.
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.
Thank you for your support.
Customer: replied 2 years ago.

I am satisfied with the response thank you

Markus

Expert:  bigduckontax replied 2 years ago.
Delighted to have been of assistance, Marcus.