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EIM13720 | Termination payments and benefits: Section 401 ITEPA 2003: exceptions: terminal grants, payments and benefits to members of HM Forces

From HM Revenue & Customs · Employment Income Manual

Section 411 ITEPA 2003 as amended by Section 63(1) FA 2007

There is no charge under Section 401 ITEPA 2003 for a payment or benefit provided:

  • under a Royal Warrant, Queen’s Order or Order in Council to a member of H M Forces

  • by commutation of an annual or periodical payment under such a Warrant or Order to a lump sum

  • (from 2006/07) under a scheme established by an Order under Section 1(1) of the Armed Forces (Pensions and Compensation) Act 2004. The Armed Forces Compensation Scheme is such a scheme.