Written question asked by Bernard Jenkin (Conservative) on Friday, 11 April 2003, in the House of Commons. It was due for an answer on Monday, 28 April 2003. It was answered by Adam Ingram (Labour) on Monday, 28 April 2003 on behalf of the Ministry of Defence.

Ministry of Defence

Question: To ask the Secretary of State for Defence, what discussions he has had with (a) the Chancellor of the Exchequer and (b) the Armed Forces Pay Review Body concerning income tax exemptions for service personnel in the Gulf; what estimate his Department has made of the cost of providing UK service personnel in the Gulf with a four month income tax exemption; and if he will make a statement.

Answer: Mr. Jenkin: To ask the Secretary of State for Defence (1) what discussions he has had with (a) the Chancellor of the Exchequer and (b) the Armed Forces Pay Review Body concerning income tax exemptions for service personnel in the Gulf; [109550] (2) what estimate his Department has made of the cost of providing UK service personnel in the Gulf with a four-month income tax exemption; and if he will make a statement. [109547] Mr. Ingram: There have been no discussions with the Chancellor of the Exchequer or the Armed Forces Pay Review Body concerning income tax exemptions for service personnel in the Gulf. The longstanding rule-- recognised by successive governments--is that Crown servants, including members of the armed forces, are chargeable to income tax on their Government salaries wherever they are serving. No estimate has been made by the Ministry of Defence of the cost of providing United Kingdom service personnel in the Gulf with a four-month income tax exemption.

Secondary information

Type: Written question
Reference: 404 c149-50W; 109550;109547
Session: 2002-03
Subjects: Armed forces Armed conflict Liability Income tax Pay Tax allowances Taxation Iraq conflict
Link: View this Written question on www.publications.parliament.uk