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Soldiers to be made income tax exempt. By Dan Martin
Armed forces serving in Iraq and Afghanistan are to be made exempt from paying income tax or given an equivalent pay rise under plans being considered by the government.According to 'The Times', the Treasury, Ministry of Defence and Downing Street have been formulating a new support package for service personnel over the past four weeks.
The newspaper said two options are being considered. The first would see soldiers in fighting zones freed from paying income tax as in the US, while the second would result in a pay rise for the lower ranks equivalent to removal of the tax.
Under the latter idea, all lower ranking soldiers, irrespective of where they are serving, would benefit.
Last week, Conservative leader David Cameron suggested in an article in 'The Sun' that a Tory government would make war zone soldiers exempt from income tax. It is believed ministers revealed government discussions had been underway for a month to avoid being accused to copying the Tories' idea.
Writing in 'The Sun', Cameron said: "We're asking a lot of our servicemen and women. But are we doing enough for them and their families? Our troops are being sent on more and more missions, in more and more distant lands ' but they still have to pay income tax while on operations. The government say this is all fair. I say it isn't.
"So when we put together our Forces manifesto, we're going to look at ways to sort these problems out."
Number of comments: 4
AccountingWEB.co.uk 3-Oct-2006
Categories: Tax News, Finance
Times read: 11708
The money would be better spent on equipping forces' personnel properly.
What's the good of a bit of extra cash if you're dead because of a shortage of body armour or a stoppage in that awful rifle that the Government continues to inflict on the Army?
Regards
Jon
I thought many of them are already non residence, but probably tax because they are crown employee overseas.
Anyway, it is probably a good thing because this will cost the treasury more and hence will encourage them to get out iraq/afghan sooner !
And while we're at it can we backdate any settlement to, say, World War One? I believe they had a rather nasty time of it then as well.
A dangerous route offering extra to people who know what the job entails just because they are being asked to do it. Anyway they do get a small bonus I believe - £5 per day (taxable, I expect)for a private soldier. What more could they want, other than not to be there in the first place?
And why not nurses ? ambulance drivers ? firefighters ? members of the house of lords ?
Nonsense, that's what it is.
