What is the fisherman's aid tax package?
Following the storms in 2013 and 2014 the Economic Development department put together a package to support the local fishing industry.
This package compensated commercial fisherman for losses during the storms and covered two separate areas:
- 50% subsidy on mooring fees
- grant of up to 80% of the cost of replacing up to 80 lost pots / equipment
This package was financial, so there may be some income tax considerations.
Replacement pots / equipment
Payments received towards the replacement of pots / equipment will not be taxed.
If you received a payment, you must not include the purchase cost of the pots / equipment in your expenditure or capital allowances calculations.
If the pots have been repaired and you have received a payment towards these costs, this is taxable income and should be declared on your financial statement.
What to submit with your tax return
Enclose a copy of your claim form confirming the amount of financial support received.