• Posted 1st September 2015

War Disablement Pension

Have you served in Her Majesty’s Armed Forces? If you have, then the war disablement pension is available in case you have been injured or disabled during a war or a result of service in Her Majesty’s Armed Forces before 6 April 2005. Such pension is paid by the Veterans Agency.

Eligibility for war disablement pension
• If you were injured, injured or suffered any illness during while serving HM Armed Forces, including the Ulster Defence Regiment (now known as the Royal Irish Regiment), the Home Guard, nursing and auxiliary services, you are eligible to claim for this pension.
• If you were injured or disabled while serving as a civil defence volunteer as part of the MN, naval auxiliary services or a coastguard because of conditions during a war or you were a prisoner of war
• If you were a civilian disabled as a result of enemy action in the Second World War or were a member of the Polish forces or in the Polish Resettlement Forces and injured or disabled during the service.

However, if you are still serving in the Armed Forces, you are not eligible to claim war disablement pension.

In case if you have been injured or have illness as a result of service in the Armed Forces on or after 6 April 2005, Armed Forces Compensation Scheme (AFCS) will be available to you. For qualifying for such scheme, you must be applying no later than 7 years after the injury or illness.

If you are eligible, do not delay and make your claim immediately. The amount you will get paid depends on the extent of your disablement. As your assessment is worked as a percentage, if your percentage is more than 20%, you will get a pension. Alternatively, if the percentage falls below 20%, you will get a lump sum payment (gratuity).

If you have received compensation for your disablement from another organisation like the Ministry of Defence, then your war disablement pension will be reduced.

If the Veteran Agency refuses your claim for War Disablement Pension and do not agree with their decision, you have the right to ask for a justification and to re-assess your claim.

Another important thing about war disablement pension is it is completely tax-free or non-taxable. This means you can leave off the tax return forms that HMRC sends you and taxes on these payments.

If you have any questions regarding this non-taxable income, our expert tax accountants are here to answer your queries. Email us at info@phoenixtaxaccountancy.co.uk or directly call us at 075 1807 5357.