Hi, We have a client who received a military pension in addition to his self employment. He has received a letter from the pension provider stating "as you probably know Veterans UK have made your Armed Forces pension tax exempt from 20th October 2016".
How should this be reported on the tax return. It would appear this is a private agreement between Veterans UK and HMRC for individuals who have suffered injury etc from combat.
Thanks in advance.
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Perhaps the client needs to ask the pension provider why they are deducting tax and sending out a letter saying its tax exempt from October 2016.
Ah well - that's part of the back story you didn't think it worth sharing with us.
I'd be asking HMRC what arrangements are being made to collect the tax overdeducted but, if I was in a rush to complete a 2018 return, I'd be entering Gross £0 and Tax £whatever in the pensions section. A white space note would indeed seem appropriate.