HC Deb 05 February 2002 vol 379 cc853-4W
Mr. Swayne

To ask the Secretary of State for Defence if he will make a statement listing the changes in tax legislation the interpretation of which has led to the mistaken tax treatment of some war disability pensions and service attributable pensions. [33610]

Dr. Moonie

The law on the tax exemption of wound and disability pensions awarded to service personnel first came into force in the Finance Act 1919. The relevant provisions have since been brought forward into the various consolidating Taxes Acts which have been introduced since then. The most recent consolidation Act was the Income and Corporation Taxes Act (ICTA) 1988 where the exemption can be found at section 315. A previous consolidation Act was passed in 1952 but this did not introduce or change this tax exemption.

Following further discussion with the Inland Revenue, we are undertaking further work to establish precisely when the error was introduced. Meanwhile, we continue to consider approaches from pensioners, widows or their families who may have been affected by this error.

David Davis

To ask the Secretary of State for Defence how many retired armed service officers and their widows in(a) the East Riding of Yorkshire and (b) Hull have been identified as paying tax on retired pay awarded since 1952 on the grounds of disability attributable to or aggravated by service. [32095]

Dr. Moonie

Information on the number of Army Pensioners resident in the East Riding of Yorkshire and Hull who are so far known to have been incorrectly taxed on their invalidity pensions could be provided only at disproportionate cost.

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