War Pension Info & Questions

Forces Pension Society

If the individual is invalided for an attrib condition and the Principle Invaliding Condition is assessed at 20% disability or above by WpS , my understanding is that the pension is tax free. These days it is likely to be an AFCS award and if that is linked to a medical discharge and the AFCS awards a Guaranteed Income Payment for the Principle Invaliding Condition, the pension becomes tax free.


The war pension is tax free but I have spoken to someone in receipt of a war pension who told me their normal military pension is also tax free as they are on a 30% invaliding pension. Hence the question.
I was on 30% disability I contacted the nice kind tax man who worked their magic and made my normal pension tax free. It lasted six months until one day I had a nice letter saying that it was a mistake and could I kindly repay the back tax on my 24 year pension. Trying to argue the point that they cocked up went way above their heads so pay it back I did.


War Hero
You should not have had to pay it back , I think it is called Section 19 , if the tax people do not apply taxes correctly or fail to take notive of something they should have been aware of then you do not need to pay , I had this problem some years ago when they wanted nearly £6000 from me as they had not chased up tax from the MOD . They gave me the option of paying it or having it deducted from my pensions plus interest , Conacted my MP who sorted it out , The tax people tried it again the next year for a slightly smaller amount , again contated the MP . End result I| didnt have to pay it, Took a bit of work but much better in my pocket than the tax people
No but the treatment I.e. Upper tibial osteotomy followed by a Full knee replacement years later were carried out while still serving.
Thanks. In that case (and I am not an expert but have a lot of personal experience and research) I doubt your service pension will be made tax free, as it is a ‘normal’ pension, rather than a Service Attributable Pension or Service Invaliding Pension.

I believe there is a mechanism to argue for a retrospective medical discharge, thereby changing the pension status, but believe this is a very unlikely outcome. In other words, your WDP will be paid tax free (as always) but your service pension will be taxed.
I hope your knee is doing okay.

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