Armed Forces Death-in-service Payments 2025-02-10
2025-02-10
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The issue of death-in-service payments being taxed and its impact on military retention is highlighted. The questioner expresses concern over the clarity of government policy in this area.
If he will have discussions with the Chancellor of the Exchequer on the potential merits of removing taxation from death-in-service payments. Retention in the armed forces is already suffering; numbers are coming down and people are struggling to make the maths add up between serving today and having a future tomorrow. The problem with these arguments and the lack of clarity from the Government is that too many people are making decisions on which we all need them to think again.
I thank the right hon. Member for Tonbridge (Tom Tugendhat) for his important question. He has my absolute assurance that if anyone dies in service, from training all the way through to combat and operations, they will absolutely be exempt from inheritance tax provisions. I will continue to discuss that issue, as well as many others to do with armed forces pay, with my opposite number in the Treasury.
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Assessment & feedback
The Minister did not provide specifics on the discussions or a clear commitment regarding the removal of taxation from death-in-service payments.
We Need To Take A Holistic View
Reminded That We Have Missed Every Recruitment And Retention Target For The Past 14 Years
Response accuracy
Q2
Partial Answer
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Context
Concerns are raised about the compatibility of proposed changes to inheritance tax with the commitment in the armed forces covenant.
If he will give an assurance that the proposed changes to the application of inheritance tax to certain armed forces death-in-service payments are compatible with the commitment in the armed forces covenant to ensuring that our brave and loyal armed forces personnel face no disadvantage compared to other citizens in the provision of public and commercial services.
The covenant will come into law in the next two years or so, on the back of the armed forces Bill. That will result in a great expansion, with all Government Departments falling in line with the covenant, so that no individual who has served is disadvantaged because of that service.
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Assessment & feedback
The Minister did not provide an assurance regarding the specific compatibility but spoke generally about the armed forces covenant's goals.
Reminded That We Have Missed Every Recruitment And Retention Target For The Past 14 Years
Response accuracy
Q3
Partial Answer
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Context
The Forces Pension Society has raised concerns about the proposed changes to death-in-service benefits taxation. The Minister is questioned on when the MOD submitted its response to HMRC's consultation.
On what day did the MOD submit its response to that key consultation—presumably in defence of service families’ interests—and will the Minister place a copy of that response in the Library?
May I remind the right hon. Member of my service, and of the fact that I will in no way, shape or form take this for granted? I am putting all my effort into those discussions at the moment. My officials have discussed that with the Treasury, I have discussed it with the Treasury, and we will continue to discuss such issues with the Treasury to ensure that our armed forces personnel get the deal that they deserve.
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Assessment & feedback
The Minister did not provide a specific date or confirm if there was any response submitted.
Scoring Political Points On The Back Of Armed Forces Families Is Unacceptable
Response accuracy