Tax Free Pension
in UK armed forces MoneySaving
4 replies 4.1K views
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I think that this was withdrawn in 1993. According to HMRC (who my husband has spoken to) it IS tax free.
It seems that the RBL, SPVA and the Forces Pension Society are not aware of this...
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 –