Having heard reports that the Government is considering reducing the Lump Sum Allowance level on the 30 Oct Budget many of our members have contacted us asking “is my Armed Forces pension tax free lump sum safe?‘
Our answer today is we don’t know. We have raised the issue to the highest levels of Government so the key decision makers are aware of the potential impact this measure could have on you as individuals and families and the Armed Forces as whole. You can read the Chief Executive’s letter to the Chief Secretary to the Treasury here.
Should the Government reduce the present level of the Lump Sum Allowance it could have a potential impact on those serving in the Armed Forces and could impact some of our Veterans.
We believe the Government would be breaking the Armed Forces Covenant – the nation’s contract with those who serve – if it chooses to impose a tax charge on what were previously tax-free lump sums – monies military people were promised would be paid in full when they committed themselves to a life of service.
The CE has already spoken with Defence and Government media including PoliticsHome to bring the issue out into the open.
Further reading: How would this change affect veterans?
