Armed Forces Educational Allowance

The MOD (Ministry of Defence) pays Continuity of Education Allowances to members of the Armed Forces  – effectively they are a contribution towards boarding school costs so that children’s education is not disrupted by frequent postings. At present, these allowances are (in some circumstances) taxable, but the MOD bears the tax. To simplify matters as from 6 April 2012 the allowances will be exempt from tax.

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