Income Tax (Earnings and Pensions) Act 2003 section 411

Exception for payments and benefits for forces

Section 411 exempts certain payments and benefits provided to members of the armed forces from the tax charges that would otherwise apply under this chapter of the Act.

• Payments or benefits provided under a Royal Warrant, Queen's Order or Order in Council relating to members of Her Majesty's forces are exempt from this chapter's tax charges.
• Lump sum payments made in place of annual or other periodic payments authorised by such Warrants or Orders are also exempt.
• Payments or benefits provided under schemes established by order under the Armed Forces (Pensions and Compensation) Act 2004 are similarly exempt.
• The exemption ensures that armed forces pension and compensation arrangements authorised by the Crown or by statute are not subject to the tax rules in this chapter.