§ Sir E. Errington
asked the Chancellor of the Exchequer why the Inland Revenue have ruled that a discharged Service man's pension is only exempt from Income Tax liability if he is discharged medically unfit by reason of a disability attributable to his service and is not allowed the exemption unless so discharged. even if he has been awarded a percentage disability pension; and if he will amend this rule to apply to disability pensions of any percentage attributable to service.
§ Mr. Diamond:
A Forces disability pension is exempt from tax, but this exemption does not apply to a Service pension received together with a disability pension. It is the general rule that service pensions are taxable, and I see no reason to exempt Forces service pensions.