How Crew Should Utilise UK Allowance For Tax-Free Investment Income From A Buy To Let Rental Property

Many yacht crew will consider investing some of their hard-earned savings into buying a property in the UK. Although some will want the property to be their main residence, others want to buy purely for an investment. One of CrewFO‘s partners is here to talk you through the Seafarers Earnings Deduction and the importance of seeking advice from a mortgage broker.

Seafarers Earnings Deduction

Although yacht crew are required to submit a UK tax return each year, many will qualify for Seafarers Earnings Deduction, meaning they do not pay tax in the UK on their onboard earnings.

This can provide a great opportunity for UK residents who are not utilising their UK tax-free earnings allowance, as they can potentially use the allowance to offset the first £12,570* of any rental income they receive from a buy to let investment property.

Clearly if some or all or the tax allowance is already being utilised for ‘other’ declared income the benefits may not be as great, but for those seafarers who only have an income from yachting there could be a great opportunity.

Seeking Advice From A Mortgage Broker

For most people buying such an investment property will require a mortgage in addition to the deposit they have, and it is at this juncture that many yacht crew may require specialist advice from a mortgage broker.

Working in yachting and being paid in anything other than £ sterling can be fairly restrictive when trying to get a mortgage, but CrewFO have partnered with a mortgage broker who has helped hundreds of yacht crew buy property in the UK over the last 10 years.

The success rate of the CrewFO mortgage broker partner is very high, but it is their advice and guidance which can be extremely helpful in the early stages when thinking about buying property, whether it be one to live in or an investment property to rent out.

*UK nil-rate allowance 2024-25

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