"We will repay them with gratitude and put an end to the industry of vexatious claims that has pursued those who served in previous conflicts,” May said as quoted by the Sky News media outlet.
She also added that the UK armed forces were "the best in the world”, and made huge sacrifices to keep the United Kingdom safe.
The UK prime minister raised this issue during her visit to the United Nations General Assembly last month, and expressed concerns over the scale of claims lodged with the Iraq Historic Allegations Team (IHAT), which was set up in 2010 to carry out investigations into allegations of murder, abuse and torture of Iraqi civilians by UK military personnel.
More than 1,500 cases involving UK servicemen have been considered, ranging from harsh treatment during detention to assault and death by shooting.