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Tuesday 25 September 2007 06:00
Ministry Of Defence (National)
Council Tax relief for troops on operations - Please note amended embargo date.
Armed Forces personnel deployed to Iraq and Afghanistan will benefit from a tax-free rebate on the cost of council tax in new measures announced by Defence Secretary Des Browne today.
All troops who pay council tax for a property in the UK will receive financial support through a flat-rate rebate payment over a six month tour of ?140 - worth 25 per cent of the average Council tax bill. The rebate will be added to the tax-free Operational Allowance paid at the end of an operational tour in Afghanistan or Iraq. The new measures will be introduced from October and first payments will be made from 1 April 2008.
Defence Secretary Des Browne said:
"I am delighted to announce a further enhancement to the operational welfare package. Armed Forces personnel who pay Council tax and who deploy to Iraq and Afghanistan will be entitled to a tax free payment of ?140. This payment is designed to offset around 25 per cent of their Council Tax payments whilst they are on operations. It underlines the Government's commitment to support our Armed Forces and their families.
"We intend to extend this payment to all those deployed overseas on operations next year."
Notes to editors
1. The tax-free Operational Allowance is currently worth ?2,320 over a six month tour of duty in Iraq or Afghanistan.
2. The ?140 Council Tax rebate for a six month tour will only be available to troops who pay Council Tax for a property in the UK. Those living in Single Living Accommodation do not pay any accommodation charges, including Council Tax while deployed on operations.
