Income Tax (Earnings and Pensions) Act 2003 section 296

Armed forces' leave travel facilities

Section 296 provides a tax exemption for travel facilities and payments provided to members of the armed forces when travelling on or returning from leave.

• No income tax is charged on the provision of travel facilities or travel payments for armed forces personnel going on or returning from leave
• The exemption covers various travel warrants, travel allowances, and allowances for the use of private cars made available to service personnel
• The term "armed forces of the Crown" includes all UK service personnel — members of regular forces, reserve forces, and women's services
• The provision of an actual vehicle for leave travel is excluded from the exemption and remains taxable as a benefit in kind under the rules for cars, vans and related benefits