Members of the armed forces are employees and their income is, of course, subject to PAYE. See, generally, ¶486-000 (Crown servants).

Certain exemptions from tax are, however, given to members of the armed forces.

Leave travel facilities

No liability to income tax arises in respect of travel facilities provided for members of the naval, military or air forces of the Crown going on, or returning from, leave (ITEPA 2003, s. 296 and s. 228). The exemption applies not only to travel vouchers and warrants for particular journeys but also to allowances and other payments for and in respect of leave travel, whether or not a warrant was available.

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