Resettlement grant 22 June 2013 at 10:36PM in UK armed forces MoneySaving 4 replies 3.1K views

penny-counter

Hi all, I left the Armed Forces last year after serving for 9 years- I received the tax-free resettlement grant for Officers.
I am preparing my 2012/13 self-assessment tax return - Do I have to declare this? If so, on which part exactly? I am assuming I won't get taxed on it from HMRC if it's entered into the right box??
Cheers

Dazed_and_confused

penny-counter wrote: »

Hi all, I left the Armed Forces last year after serving for 9 years- I received the tax-free resettlement grant for Officers.
I am preparing my 2012/13 self-assessment tax return - Do I have to declare this? If so, on which part exactly? I am assuming I won't get taxed on it from HMRC if it's entered into the right box??
Cheers

If you enter it on a Self Assessment tax return you will almost certainly be taxed on it. I know nothing about the forces but presumably it is called a tax free resettlement grant as you don't have to pay tax on it - if this is the case (forces should be able to clarify this for you I guess) then why would you want to include it on your tax return?

penny-counter

There is a section which asks you to declare lump sums of any kind. There is something about being allowed£30k or less - I am assuming this might be where I would enter it. The SATR is not just about being taxed on anything you enter - it's about declaring it in case the tax-man comes knocking and wants to know what that 11k was. I just want to know if the allowable 30k or less section is where i would enter it and that I wouldnt get taxed on it.

Alias_Omega

Hi Penny-Counter,

Your probably best ringing the hotline for a direct answer, however when you receive your reply. Can you please come back and update us.

Whilst you may find your answer. Your question, post & reply will be visible in google forever.

Regards,

AO

Trying_to_be_good

It's tax-free, so no need to declare it at all, I promise :-). It's not income, and not a qualifying compensation payment, no tax to pay.