At end of 2021 we introduced our ‘Question of the Week’ series
In it we gave answers to some topical questions covering Armed Forces Pensions which our team of consultants come across every day.
As promised, we’re back with a new series, so let’s start with a question on medical discharge…
I was recently medically discharged and as such I am receiving a medical pension. Why am I being taxed on this pension, I thought it wasn’t taxable?
If you are receiving a medical pension, it will be taxable unless the condition for which you were medically discharged is classed as ‘attributable to service’. The decision to award the pension as a ‘service attributable pension’ is usually made around 6 months after discharge.