Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of implementing an adjusted rate of tax for army reservists that is separate to their civilian incomes.

The Government fully supports Reservists in volunteering for service alongside their regular employment. Accordingly, Reservists are eligible for an annual tax-free lump sum. Information on this can be found on the Army Reserves pay and benefits webpage. We keep our policies and processes under constant review, to ensure that they attract people to serve and incentivise them to stay.

Introducing a separate, adjusted rate of tax for army reservists’ income would add complexity to the tax system and be costly at a time when the Government has already had to take a number of difficult but necessary decisions on tax, welfare, and spending to restore economic stability, fix the public finances, and support public services.