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Tax Allowances: Veterans

Treasury written question – answered on 11th September 2013.

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Photo of Bob Russell Bob Russell Liberal Democrat, Colchester

To ask the Chancellor of the Exchequer if he will make it his policy that payments from the Armed Forces Compensation Scheme and guaranteed income payments should be exempt from tax.

Photo of David Gauke David Gauke The Exchequer Secretary

In recognition of the vital role played by the armed forces and their families, many payments under the Armed Forces Compensation Scheme, in particular those to service personnel or veterans, are already exempt from any liability to income tax. The Government has no plans to change this policy.

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