Armed Forces Compensation Scheme

Summary

To ask the Chancellor of the Exchequer, what steps her Department is taking to ensure that compensation awarded to armed forces (a) veterans and (b) their families is not classified as income.

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Timeline

1. 1 June 2026

   Written question

   To ask the Chancellor of the Exchequer, what steps her Department is taking to ensure that compensation awarded to armed forces (a) veterans and (b) their families is not classified as income.

   Source: Commons

2. 9 June 2026

   Answer

   Payments intended to compensate individuals for personal injury would generally fall within established tax principles that treat compensation for personal injury as non-taxable. If payments are made which specifically represent loss of earnings, they wil...

   Source: Written answer

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• · Treasury · Answering body

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