Income Tax (Earnings and Pensions) Act 2003 section 298

Reserve and auxiliary forces' training allowances

Section 298 exempts from income tax certain training-related payments made from public funds to members of the reserve and auxiliary forces of the Crown.

• Training expenses allowances paid from the public revenue to reserve and auxiliary forces members are exempt from income tax
• Bounties paid from the public revenue in return for undertaking training and reaching a required standard of efficiency are also exempt
• The exemption applies only where the payments are made out of the public revenue, not from other sources such as local authority funds
• A court case confirmed that payments from local authority funds do not qualify for this exemption, even if they are similar in nature