HC Deb 13 February 1978 vol 944 cc87-8W
Mr. Luce

asked the Secretary of State for Defence which awards for gallantry or meritorious service are exempted from tax on the payment of annuities; what other awards for gallantry or meritorious service exist which are not subject to exemption from tax on the payment of annuities; what are the total number of awards for gallantry and meritorious service broken down by type and date of origin; which of these awards have annuities attached to them; and of what value.

Dr. Gilbert

Under Section 368 of the Income and Corporation Taxes Act 1970, annuities associated with the award of the Victoria Cross and the George Cross are exempt from income tax. The annuity associated with the Meritorious Service Medal, which is payable only to a limited number of its holders, is subject to income tax. No other awards for gallantry or meritorious service made to members of the Armed Forces carry annuities.

Gallantry and meritorious service awards for which members of the Services are eligible are as follows and were instituted in the years shown against each. They are listed in the order in which the medals are worn and the annuity is mentioned where it applies.

  • Victoria Cross (1856) (Annuity, £100)
  • George Cross (1940) (Annuity, £100)
  • Distinguished Service Order (1886)
  • Distinguished Service Cross (1914)
  • Military Cross (1914)
  • Distinguished Flying Cross (1918)
  • Distinguished Conduct Medal (1854)
  • Conspicuous Gallantry Medal (1874)
  • George Medal (1940)
  • Distinguished Service Medal (1914)
  • Military Medal (1916)
  • Distinguished Flying Medal (1918)
  • Meritorious Service Medal (1845) (Annuity, if paid, £10)

Appointments to or promotions in the Order of the British Empire and awards of the British Empire Medal may be associated with gallantry, in which cases a silver emblem is worn on the riband.

Certain of the gallantry decorations, when conferred upon non-commissioned ranks only, may be accompanied by an addition of 2½p per day to eventual pension or, if there is no pension entitlement, to a single gratuity of £20 paid on discharge. Income tax exemption is applied only to the pension addition associated with the Victoria Cross.