Reserve Forces: Tax Allowances

(asked on 13th July 2026) - View Source

Question to the Ministry of Defence:

To ask the Secretary of State for Defence, if he will assess the potential merits of increasing tax free bounty payments to members of the reserve forces.


Answered by
Luke Pollard Portrait
Luke Pollard
Minister of State (Ministry of Defence)
This question was answered on 20th July 2026

This Government recognises that Reserves are at the heart of Defence.

Last month, this Government increased the bounty payments by 3.6% on 1 April 2026, following the Armed Forces Pay Review Body recommendations.

This increased the annual tax free bounty to £526 for their first year of service up to £2,308 for their fifth year of service and beyond, showing our commitment to our Reservists who commit their time to Defence.

Increasing the tax-free bounty payments for members of the Reserve Forces offers a direct financial incentive to improve recruitment, boost operational readiness, and maximise retention within defence.

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