Exempt pensions and allowances: Section 639 ITEPA 2003

The following types of pension or allowance payable to war widows or other dependants are exempt from tax:

pensions or allowances payable by or on behalf of the Ministry of Defence under a specified instrument relating to death due to:

service in the armed forces of the Crown,

wartime service in the merchant navy, or

war injuries

pensions or allowances payable at similar rates by the Ministry of Defence in respect of death due to peace-time service in the armed forces of the Crown before 3 September 1939

any pension or allowance of a similar character payable under the law of a foreign country.

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