Explanatory note

These Regulations specify conditions that must be met in order for a payment to fall within the definition of an “accommodation allowance” for the purposes of section 297D of the Income Tax (Earnings and Pensions) Act 2003 (c. 1). Section 297D provides an income tax exemption for payments made to, or in respect of, members of the armed forces of the Crown out of public revenue for or towards the costs of accommodation. The conditions require that a payment falls within certain categories of payments that may be made by the Ministry of Defence (“MOD”) under the “Tri-Service Accommodation Regulations, Volume 1, Part 8” set out in Joint Service Publication 464 (the “JSP”), which is a document published by the MOD.

The JSP is available https://www.gov.uk/government/publications/draft-tri-service-accommodation-regulations-tsars-jsp-464-march-2024. Hard copies of this document can be obtained from the Accommodation Team, MOD Main Building, Whitehall, London, SW1A 2HB (email: [email protected]).

A Tax Information and Impact Note has not been prepared for this Instrument as it contains no substantive changes to tax policy.