Income Tax (Earnings and Pensions) Act 2003 section 297C

Armed forces: Continuity of Education Allowance

Section 297C exempts from income tax the Continuity of Education Allowance paid to or in respect of members of the armed forces.

• Payments of the Continuity of Education Allowance to armed forces members are fully exempt from income tax
• The exemption applies both during the member's service under the Crown and after their death
• The allowance is formally designated under a Royal Warrant made under section 333 of the Armed Forces Act 2006
• The exemption was introduced by the Finance Act 2012