VFR08200 - US forces additional procedures: the US forces Limited Privilege Programme (LPP)

General
Identification of retirees entitled to the LPP
Fixed charge payable on ‘tax paid’ coupons
‘Tax paid’ coupons
Records kept
Payment of revenue
Use of the LPP by RAF Liaison Officers

{#General}General

Under the Limited Privilege Programme (LPP), arrangements have been made to allow retired US forces personnel and their dependants who are permanent residents of the UK, to buy goods at US forces sales facilities on the bases in the UK on payment of a fixed charge (Fixed charge payable on ‘tax paid’ coupons). The scheme does not extend to any alcoholic beverages (including beer) or tobacco products.

{#Identification}Identification of retirees entitled to the LPP

The US authorities register entitled personnel on application and issue a Retiree’s Limited Privilege Card (USAFE Form US 174). Each applicant should have a valid military ID in order to buy the ‘Tax paid’ coupons’ and to enter the sales facilities. The US authorities check the identity of all personnel using base exchanges and commissaries.

{#Fixed}Fixed charge payable on ‘tax paid’ coupons

A fixed charge representing customs duty, agricultural levies and VAT is agreed with the US, and is collected in advance by the US authorities, through the sale of special ‘tax-paid’ coupons.

{#Taxpaid}‘Tax paid’ coupons

Retirees pay the taxes due on retail purchases by buying the coupons which are handed over in exchange for the goods. The coupons are obtained from the main AAFES authorities on each base.

The coupons are printed with the amount for which the tax has been paid and should be handed to the cashier up to a total face value equal (to the nearest dollar) to the goods purchased. The coupons should be handed in with the cash takings at the end of each day and invalidated at the sales office. Invalidated coupons should be retained for six months.

{#Recordskept}Records kept

Records of the total coupon sales and purchases should be sent each month to AAFES HQ at RAF Feltwell by the various US forces bases. ‘NIL’ returns should also be submitted.

{#Payment}Payment of revenue

The LPP sales reports from all the US bases are consolidated at RAF Feltwell and a Limited Privileges Program return is submitted quarterly with payment to the HMRC National Payment Centre (NPC) at Cumbernauld. On receipt at the NPC, an email is sent to the International Trade team at Peterborough confirming receipt of payment. Peterborough are responsible for all risk based assurance at RAF Mildenhall and RAF Lakenheath.

{#RAF}Use of the LPP by RAF Liaison Officers

Under an agreement with the US force authorities, RAF Liaison Officers and their families permanently stationed on USAF bases in the UK, are allowed to participate in the retirees’ scheme.

This concession applies exceptionally to RAF Liaison Officers only. Any requests to use the scheme, or the unauthorised use of the scheme by other UK forces personnel, should be notified to the Visiting Forces Unit of Expertise.