Army Disability Pensions. Are you paying Tax on it?

#1
Not sure if this topic has been previously dealt with


Caught a program on Radio 4 this morning : http://www.bbc.co.uk/radio4/fortunehunters/

Seems that the Army has been deducting tax from disability related pensions, when they shouldn't.

The Navy & RAF haven't deducted tax.
Seems on going scandal Army not returned all the tax wrongly taken. Not sure if any here are involved.

Listen again here to the program : http://tinyurl.com/9dxz2e
 
#3
It is a scandal but there should be no tax being deducted now from disability pensions. The issue only affects Army disability pensions, as the relevant legislation was correctly implemented for the other two services in the 1950s. Having eventually reluctantly admitted their mistake, the MoD are described in the programme as taking a bloody minded attitude towards those affected. MoD gave the programme a statement which sounded extremely dismissive.

The tax wrongly deducted was eventually refunded to those who claimed (there may be widows and families out there who do not know about their right to repayment), but the government have refused to pay interest on the wrongly deducted payments which can come to a considerable sum. The programme interviewed Korean veteran Maj John Perry who was the man who identified the error, and Chindit Major Richard Perkins who has been mentioned here before.
 
#4
My war pension is tax free.

I pay tax on my service pension though, I assume thats correct ?
 

oldbaldy

LE
Moderator
#5
.Sven said:
My war pension is tax free.

I pay tax on my service pension though, I assume thats correct ?
That's correct.
 

oldbaldy

LE
Moderator
#7
delinquent said:
I get a war pension and a war disability pension - not taxed on either
That's also correct
 
#10
heard_it_all_before said:
.Sven said:
My war pension is tax free.

I pay tax on my service pension though, I assume thats correct ?
Is your Service pension a SIP?
Whats a SIP ?

My Service pension was awarded early after I had been awarded a war pension.
 
#12
heard_it_all_before said:
heard_it_all_before said:
.Sven said:
My war pension is tax free.

I pay tax on my service pension though, I assume thats correct ?
Is your Service pension a SIP?
A SIP is a Service Invaliding Pension. If you get a Service War Pension then your Service Pension is 'Normaly' made exempt of UK Income TAX.

I'd have a butchers on here SPVA
Thanks for that, I'll look into it.
 
#13
.Sven said:
heard_it_all_before said:
heard_it_all_before said:
.Sven said:
My war pension is tax free.

I pay tax on my service pension though, I assume thats correct ?
Is your Service pension a SIP?
A SIP is a Service Invaliding Pension. If you get a Service War Pension then your Service Pension is 'Normaly' made exempt of UK Income TAX.

I'd have a butchers on here SPVA
Thanks for that, I'll look into it.
Today I received a letter from Ty Glas saying that I am to pay 20% Tax on my Army Pension, this is after already receiving it tax free. I ended up getting through to Wales who simpley said that I should send a copy of my AFPS letter that states my Pensions Tax exempt status.

The most annoying thing is that the 3 Governmental Public Sector bodies, SPVA, AFPS and Xafinity, that are meant to have sorted it all out weren't interested. I know that it's my Tax, but these feckers are paid to sort all this shite out.
 

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