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Tax Free Pension
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Hinnibell
Posts: 19 Forumite
Is there anyone out there that has a level three gallantry award? Are you aware that your military pension is tax exempt? My husband has the MC and has just found out about this - he is due to leave after his 22 yrs - but no-one else seems to be aware of this?? Is anyone else familiar with this?
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I believe it is only the additional pension that comes with the award that is tax free and not the whole of his pension.0
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Hi Molerat,
I think that this was withdrawn in 1993. According to HMRC (who my husband has spoken to) it IS tax free.
See http://www.hmrc.gov.uk/manuals/eimanual/EIM74307.htm
It seems that the RBL, SPVA and the Forces Pension Society are not aware of this...0 -
EIM74307 - Pensions: particular occupations: armed forces: awards for bravery
Section 638 ITEPA 2003
Section 638 provides that no liability to income tax arises on a pension or annuity if it is paid to the holder of a specified award for bravery in respect of the award. The specified awards are –- the Victoria Cross
- the George Cross
- the Albert Medal
- the Edward Medal
- the Military Cross
- the Distinguished Flying Cross
- the Distinguished Conduct Medal
- the Conspicuous Gallantry Medal
- the Distinguished Service Medal
- the Military Medal
- the Distinguished Flying Medal
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Your link above states exactly what I said0
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