Should Military Pensions be tax exempt?

[mel]

They've been earned over years of service but are still taxed and taken into account when "means testing" recipients for benefits, is this right?

If you agree then sign this

http://petitions.number10.gov.uk:80/Military-Pensi...

If you don't then feel free not to and by all means vent your thoughts here.

[mel]

I'm not actually sure either way, one hand is saying that ex serviceman often have trouble adjusting to the civilian world and there are numerous well documented cases of the homeless and destitute who have ended up that way because they have given the best years of their lives to the service of the crown and are paying the price for it. The other hand says if they were tax exempt it would be the thin end of the wedge and where do you stop, all civil service pensions? all public sector pensions? What about the very very nice index linked and generous pensions payed to retired staff officers? Or the pathetically small pension payed to Private Smith after his 5 years service that left him traumatised and disfunctional?

I did actually sign it though, simply because it's relevant to me and lets face it nobody LIKES paying tax

Edited by mel on Tuesday 31st March 15:36

[mel]

mrmaggit said:

Craig@CMR said:

yes, military personell should be tax exempt

When serving in a combat zone only, IMHO.

Not just combat zones but I also think that the same rules as apply to expats should be extended to service personel, I have previously spent 18 months in one stint working overseas, I had no access to any UK services at all and worked alongside expats (and perversely Customs Officers HMRC now) who were paid tax free.

My Brother is currently on loan service to the Sultan of Oman, he wears the Sultans uniform, carries the Sultans ID card, if needed he would fight for the Sultan and everything that is needed by him and his family is paid for by the Sultan. The Sultan pays the Ministry of Defence a very tidy sum for the benefit of his service for 3 years, however because his pay is administrated in the UK he pays a full tax & NI contribution. Is that right?

[mel]

bouffy said:

mel said:

mrmaggit said:

Craig@CMR said:

yes, military personell should be tax exempt

When serving in a combat zone only, IMHO.

Not just combat zones but I also think that the same rules as apply to expats should be extended to service personel, I have previously spent 18 months in one stint working overseas, I had no access to any UK services at all and worked alongside expats (and perversely Customs Officers HMRC now) who were paid tax free.

My Brother is currently on loan service to the Sultan of Oman, he wears the Sultans uniform, carries the Sultans ID card, if needed he would fight for the Sultan and everything that is needed by him and his family is paid for by the Sultan. The Sultan pays the Ministry of Defence a very tidy sum for the benefit of his service for 3 years, however because his pay is administrated in the UK he pays a full tax & NI contribution. Is that right?

No.

Equally, there are plenty of people (myself included) who have always worked, always paid full taxes, never claimed any benefits whatsoever, never stepped into an NHS hospital, and never attended a state school. That's probably not fair either, and I would love to have x years worth of tax rebates for all those things.

(Not having a go at you, just highlighting the injustice in the system)

I agree but the bottom line is that you were and are living in the UK and rightly so should contribute, the real injustice as I see it was that in my case I was working along side British Customs Officers who because their own organisation agreed that they were out of the country for over x amount of days in the year were deemed as non domicile for tax purposes, in my Brothers current case he serves alongside British "contract" Officers in Omani Army (or mercenarise if you want) who are all paid directly by the Sultan they are also classed by HMRC as non domicile for tax purposes, but he's not.

[mel]

The Overseas allowance is purely intended as an adjustment for the higher costs of living while in overseas jobs, ironically it is calculated annually and takes into account the difference between costs of all sorts of products and services both at home and in the host country along with the exchange rate at that time, in certain countries at the moment serviceman are extremely out of pocket due to the pound bombing against the local currency.

[mel]

Eric Mc said:

Don't confuse "domicile" with "residence".

They are very different things in tax and law.

Sorry, that was the non tax accountant in me trying to sound knowledgeabubble, I really meant "not living in the bloody country"

[mel]

Seems to work for a certain Mr L Hamilton ok, his employer are in the UK, I'd suggest that his job is based in the UK, yet because he's burried up to the back wheels in a Sugerbabe while overlooking Lake Geneve for enough of the year he doesn't pay tax!

jealous? moi? never.

Edited by mel on Tuesday 31st March 17:22

[mel]

See, what do I know? whatever she is I'd still much rather be washing the windows and feeding the horse with her than picking sand out my arse in downtown Kandahar