Annuities and Pensions for Holders of Gallantry Medals
27th May 2017
The question of pensions and their tax free status has long been a question of many of our members. The issue however relates only to any annuity that a gallantry medallist receives for being a holder of certain gallantry medals. We have been chasing down an answer on this subject for quite a while now and the MoD has published JSP 764 Part 7 which provides the clarity needed to answer the questions we frequently are asked.
In summary, the payment of annuities ceased on 6 September 1993, at the time when there was a Government led review of gallantry medals which resulted in several new awards such as the CGC and the demise of the MM, DCM and CGM for example. At the same time, the MC became a Level 3 award for all ranks rather than just for Officers and Warrant Officers Class 1.
The annual pension for being awarded a gallantry medal however was somewhat derisory, amounting to £9.10 a year in 2014/15 and it was this amount that would be regarded as free of any liability to income tax. Unless your award was received prior to 7 September 1993 then you would not receive this additional pension.
Members who believe they are entitled to this additional pension should first read JSP 764 Part 7 Chapter 2 which is now available on our website under the Newsletter tab and then contact their Unit Admin Office or Veterans UK. Note that the GM, CGC and the AFC were never included in the list of gallantry medals eligible for this additional pension for gallant conduct. Also I believe that awards of the MC to officers was also exempt this additional pension.
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