(This note is not part of the Regulations)
These Regulations specify a condition for a payment to fall within the definition of an “accommodation allowance” for the purposes of section 297D of the Income Tax (Earnings and Pensions) Act 2003 (c. 1). Section 297D provides an income tax exemption for payments made to, or in respect of, members of the armed forces of the Crown out of public revenue for or towards the costs of accommodation.
Regulation 1(2) provides that these Regulations have retrospective effect for payments made on or after 11th July 2022 but before 6th April 2023. Section 297D(5) of the Income Tax (Earnings and Pensions) Act 2003 provides authority for retrospective effect.
Regulation 2 specifies the condition to be met, which is that the payment is a rebate payment made in respect of CILOCT under the Ministry of Defence scheme known as the CILOCT Rebate Scheme. That scheme made one-off rebate payments of £150 to members of the armed forces of the Crown in respect of payments of CILOCT, which some members of the armed forces pay instead of Council Tax.
A Tax Information and Impact Note has not been prepared for this Instrument as it contains no substantive changes to tax policy.