Some members have been in touch recently to advise that HMRC have started taxing their Service Attributable Pensions (SAP).
This is an error on the tax office’s part as this type of benefit, which is only awarded to those that have been medically discharged because of a condition or injury that was caused by or exacerbated by, life in the service, should be paid tax free.
The matter can be fixed by members talking to their tax office.
If you are in receipt of a SAP, and the payment levels have changed recently, we would urge you to check your tax code to ensure that you are not being taxed unnecessarily.
