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Soldiers’ bonuses

12 October 2006
Categories: News

Soldiers' bonuses

UK military personnel serving in Iraq, Afghanistan and the Balkans are to receive a tax free bonus, the Treasury announced after some speculation. The payment will be up to £2,240, which is equivalent to the amount of tax a typical private soldier pays over six months. This means that half will be better off than under a tax exemption, while the most junior will be over £500 better off after a six month tour.

Soldiers' bonuses

UK military personnel serving in Iraq, Afghanistan and the Balkans are to receive a tax free bonus, the Treasury announced after some speculation. The payment will be up to £2,240, which is equivalent to the amount of tax a typical private soldier pays over six months. This means that half will be better off than under a tax exemption, while the most junior will be over £500 better off after a six month tour.
The bonus is to be backdated to 1 April 2006 and will be funded by additional new resources from the Treasury. In the current financial year it is expected that the cost will be in the region of £60 to £70 million. The bonus will not be taken into account for tax credit purposes.
HM Treasury press release 73/06 dated 10 October 2006

Categories: News
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