What allowances are exempt from income tax under section 297 of the Income Tax (Earnings and Pensions) Act 2003?

Section 297 exempts two categories of allowance paid from public revenue to armed forces personnel: allowances paid in lieu of food or drink normally supplied to members of the armed forces, and allowances paid as a contribution towards the expenses of an armed forces mess. Both require formal Treasury certification to qualify for exemption.

What conditions must be met for the armed forces food and mess allowance exemption to apply?

Two conditions must be satisfied for the exemption under section 297. First, the allowances must be payable out of public revenue, meaning they come from government funds. Second, the Treasury must formally certify the purpose of the allowance, confirming it substitutes food or drink or contributes to mess expenses.

What is the role of Treasury certification in the section 297 exemption?

Treasury certification is a mandatory requirement for the exemption to apply. The Treasury must formally confirm that the allowance is paid either instead of food or drink normally supplied to armed forces members, or as a contribution towards mess expenses. Without this certification, the allowance would be subject to income tax.

Does section 297 cover re-enlistment bounties or post-war gratuities for military personnel?

No. Although earlier legislation from 1946 to 1951 covered re-enlistment bounties and gratuities under post-war schemes for military personnel who had seen active service, those provisions are now considered obsolete. They were not carried forward into the Income Tax (Earnings and Pensions) Act 2003.

Income Tax (Earnings and Pensions) Act 2003 section 297

Armed forces' food, drink and mess allowances

Section 297 provides that certain allowances paid to members of the armed forces from public funds are exempt from income tax, specifically those paid in lieu of food or drink and those paid as contributions towards mess expenses.

Allowances paid from public revenue to armed forces personnel instead of food or drink normally supplied are exempt from income tax, provided the Treasury certifies them as such
Allowances paid from public revenue as a contribution to the expenses of an armed forces mess are also exempt, again subject to Treasury certification
Both exemptions require two conditions to be met: the allowances must be paid out of public revenue, and the Treasury must formally certify the purpose of the allowances
The exemption covers two distinct categories of allowance — food and drink substitution allowances and mess contribution allowances — each assessed independently

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