§ Mr. Ovendenasked the Chancellor of the Exchequer if he will list those pensions payable to former members of the Armed Forces in respect of service or disability which are tax-free and those which are liable to tax; and what are the conditions under which pensions which are normally taxable can be exempted when paid in combination with a tax-free pension.
§ Mr. Robert SheldonThe following pensions paid to former members of the Armed Forces in respect of disability are exempt:—
- Wounds pensions granted to members of the forces.
- Officer's disability retired pay attributable to conditions of service.
- Pensions in respect of disablement or disability attributable to conditions of service granted to members of the forces other than commissioned officers.
- Disablement pensions attributable to conditions of service granted to persons who have been employed in the nursing services of the forces.
- War disability pensions administered by DHSS.
The following pensions paid to former members of the Armed Forces in respect of long service are taxable:—
- Service career pensions.
- Illness or disability pensions other than those attributable to conditions of service.
Where a member of the Armed Forces is invalided out of the forces on account of a disability attributable to his service and is awarded a combined long-service and disability pension, the whole of that pension is exempted from tax because it 655W is not possible to distinguish between the parts of the pension attributable to disability and to long service.