Mr T Wright Mr V A Whittle Mr I G Kenrick (deceased) v Commissioners for Her Majesty's Revenue and Customs
Decision date: 11 August 2010
Neutral citation: [2010] UKFTT 373 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
The case concerned whether the semi-submersible tender rig West Menang qualified as a "ship" for purposes of the Foreign Earnings Deduction. HMRC accepted the employees met the deduction conditions except that their employment had to be "on a ship"; the Tribunal found the West Menang was an "offshore installation" used for exploring/exploiting mineral resources by means of a well and therefore was not a ship. The appellants' appeal was dismissed.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: medium
A movable, unpowered platform that is put to use to supply essential power, materials, accommodation and operational support to fixed drilling rigs can be characterised as a "structure... put to use for the purposes of exploiting or exploring mineral resources by means of a well," so it is an offshore installation rather than a ship; classification depends on the vessel's use in relation to drilling activity rather than the seafaring status or job functions of its crew.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The Tribunal observed, as a non-decisive point, that the outcome may produce apparently anomalous results for bona fide mariners excluded from the deduction by the vessel's classification and regretted prior administrative uncertainty and conflicting HMRC rulings on similar vessels; these remarks do not affect the factual conclusion.
Warning
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