Troops serving in Iraq and Afghanistan set to get tax break

Overseas troops get cash bonus

Overseas troops get cash bonus

British troops serving in Iraq, Afghanistan and the Balkans will be given a cash bonus to cover their tax bills while they are away, the defence secretary has announced.

Des Browne said the Treasury has made available £60 million of new funds to ensure each serviceman and women gets £2,240 tax free for a six-month deployment.

He acknowledged that although pay in the British armed forces is second only to Canada across the ranks, many other countries provide tax relief for those working overseas.

Conservative leader David Cameron promised earlier this month to exempt troops from paying tax while serving in Iraq and Afghanistan, but Mr Browne told the House of Commons this afternoon: “I think we can do better.”

He said half of those concerned would be better off under his scheme – which will be backdated to April – than through tax relief, with the lowest paid expected to be more than £500 better off over the six-month period.

His announcement comes amid growing concerns about the pay and conditions of troops on active service, particularly those who are facing fierce fighting in areas of Afghanistan and Baghdad.

A private soldier in the army earns about £15,000 a year, which works out as less than £3 an hour when the cash bonus for working abroad and the long-hours are taken into account.

This morning chancellor Gordon Brown said: “It is right that our armed forces should be properly rewarded. They already earn significantly more than American counterparts.but we can go further.”

He promised to “increase the award our forces receive when on operational services in the most dangerous conflict zones” to ensure that the “extraordinary” job they did was acknowledged and make them “among the best paid of any armed forces in the world”.

Tony Blair told BBC One’s Breakfast: “It’s important we recognise that what our troops and those from many other countries are going through today.is something quite different from what they faced over the last few decades.

“I think it’s important there’s some recognition of that. The work the troops are doing in places like Afghanistan is vital for the world’s security but it’s very, very tough.”

Liberal Democrat defence spokesman Nick Harvey welcomed the cash bonus but warned: “This payment will not address the shortfalls in essential support personnel.

“Nor will it tackle the persistent failings in support, equipment and welfare services. At a time when army manpower is at its lowest level since the Iraq war, we need to ensure that we have the capabilities to meet our commitments.

“Our troops should not just be properly paid, they must also be properly supported and protected.”

Last week, the Ministry of Defence announced a new £10 a day allowance for troops hospitalised overseas, and extra money for their families to visit them. It also extended separation and at-sea allowances to cover servicemen and women in hospital.