The Income Tax (Accommodation Allowances of Armed Forces) Regulations, SI 2023/570, provide that payments made by the Ministry of Defence (MoD) to service personnel under the 2022 contribution in lieu of council tax (CILOCT) rebate scheme are exempt from income tax. Those payments mirrored the council tax rebate payments made by the government in 2022 to households in council tax bands A to D to help with the cost of living. Personnel living in MoD accommodation are exempt from council tax but make contributions under the alternative CILOCT. The regulations exempt the rebate payments from income tax retrospectively for amounts paid between 11 July 2022 and 5 April 2023.
The Income Tax (Accommodation Allowances of Armed Forces) Regulations, SI 2023/570, provide that payments made by the Ministry of Defence (MoD) to service personnel under the 2022 contribution in lieu of council tax (CILOCT) rebate scheme are exempt from income tax. Those payments mirrored the council tax rebate payments made by the government in 2022 to households in council tax bands A to D to help with the cost of living. Personnel living in MoD accommodation are exempt from council tax but make contributions under the alternative CILOCT. The regulations exempt the rebate payments from income tax retrospectively for amounts paid between 11 July 2022 and 5 April 2023.