Is a Foreign War Pension taxable on UK resident?

Is a Foreign War Pension taxable on UK resident?

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I have a client whose late husband was a member of the Dutch Free Army during WWII.  When he arrived in the UK, he was deployed with the Candian forces who were based in the UK at the time and fought with the Allies.  He sustained wounds as a result of which he received a War Pension, paid by the Dutch government.  He remained a resident of the UK after the War.  He died in 2002 and his widow now receives the widows' reduced pension.

As I understand it, a resident who was a member of the British Armed Forces and paid a War Pension is not subject to UK tax on the pension according to section 641, ITEPA 2003.  Does the same principle apply in this case; i.e. pension due to injuries paid by a foreign government

I know that if the pension was paid as a result of death resulting from injuries sustained in the forces, the pension paid by the Dutch governemtn would not be taxable but the more recent and much applauded section 641, ITEPA 2003 deals only with pension by virtue of injuries.

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By User deleted
14th Oct 2009 16:06

If I remember correctly

I was asked several years ago to advise an individual who was resident here about reparations ( pension ?) being received from the Dutch Government as a result of [***] Persecution. Such monies received from Germany or Austria are exempt from UK Tax by Statute. The legislation is silent about Dutch pensions. I spoke to an individual at Somerset House ( International Policy Division) who advised me that HMRC would not seek to tax a Dutch pension and he gave me his name in case the Local District attempted to tax the Dutch Pension. Regretably I have no details of whom I dealt with as this was a 'one off ' case well over 6 years ago. I suggest that you try the same approach. Good Luck !!!!

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