Armed Forces Council Tax Rebate

Armed forces personnel serving in Iraq and Afghanistan are to get a council tax rebate under UK government plans.

The measure will be worth £140 to every soldier on a six-month tour of duty who pays the tax on a UK property.

The Ministry of Defence will pay for the tax relief out of its own budget.

About 13,000 soldiers will benefit from the tax rebate, which amounts to 25% of the average council tax bill.

The soldiers will receive the rebate via their tax-free Operational Allowance paid at the end of an operational tour, with the first payments to be made from 1 April, 2008.

The Government intends to extend this payment to all those deployed overseas on operations next year.