War Pension & Tax

having finally been assessed at 40% by the powers that be at the WDP i am trying to find out if this now makes your military pension non-taxable or again is this just an urban myth bandied about.

everyone i have had contact with so far does not seem to know 100% for sure.

anyone here shed some light on this please????

REgards in advance.
Your war-pension is non-taxable. From the HMRC site:

Pensions and other payments excluded from pension income for tax credit purposes The pensions and other payments listed below are to be disregarded as stated. These are non-taxable war pensions and any increase in pension payable as a result of injury on duty or a work-related illness

  • A wounds pension or disability pension to the extent disregarded under S315(1) of ICTA 1988 (War Pension)

  • An annuity or additional pension payable to a holder of the Victoria Cross, George Cross or any other decoration mentioned in Section 317 of the Taxes Act 2001. (War pension)

  • The amount of a pension or allowance to which Section 318 of the Taxes Act 2001 applies that is not taxable by virtue of S318(2) of ICTA 1988 (War pension)
It doesn't affect the rest of your military pension.

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