Additional Pensions for holders of UK Gallantry Awards

The rules regarding additional pensions for gallant conduct are included in JSP 764 Part 7. In summary, anyone in receipt of a gallantry award listed below prior to 7 September 1993 is eligible for, and should be in receipt of an additional pension of £0.025p per day or £9.10 per year. Awards since that date are no longer entitled to receive the additional pension. Members should be aware that the ‘additional pension’ that is paid to holders of named gallantry awards are exempt from income tax under Section 638 of the Income Tax (Earnings & Pensions) Act 2003 which states:

“No liability to income tax arises on a pension or annuity if it is paid to the holder of an award for bravery in respect of the award.”

Members should note however that this tax exemption applies only to the ‘additional pension’ paid for the gallantry award and not to the full Armed Forces pension which remains taxed in the normal way. Please contact the Secretary for further details if required or navigate to the HMRC website and download the HMRC Employment Income Manual, EIM 74307 – Pensions: particular occupations: Armed Forces: Awards for Bravery.

Gallantry Awards previously eligible for an Additional Pension

Military Cross (other ranks only), Distinguished Flying Cross, Distinguished Conduct Medal, Conspicuous Gallantry Medal (Naval), Conspicuous Gallantry Medal (Flying), Distinguished Service Medal, Military Medal and the Distinguished Flying Medal.

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