Veterans Inheritance Tax

Beneficiaries of anyone who died from a condition related to their active Service in WWII or in later operational theatres are able to claim exemption from Inheritance Tax. There is very little public awareness of this Inheritance Tax loophole, even in the legal profession awareness 'is patchy'.

If you saw active service in any theatre of war, or you are a war pensioner, discuss the position with your family and advisers, such as solicitors, giving special attention to the structure of wills. Tell the family doctor about the exemption. If the injury or illness was contracted during active Service and is shown to be a cause of death on the eventual death certificate, there is an extremely good case for the exemption to be awarded.

In order to claim exemption, an application must be made to the Ministry of Defence through the Service Personnel and Veteran's Agency (see below). Supporting medical evidence will be required to establish the link between the cause of death and the active service. It is therefore very important that ex-Service people keep a copy of their medical records. There is no time limit on the exemption as long as it can be established that the injury or disease has shortened someone's life expectancy.

Inheritance Tax amount changes annually (currently £312,000) below that amount is nil-rated and above that amount is liable to be taxed at 40% .

Service Personnel & Veterans Agency,
Joint Casualty & Compassionate Centre (Deceased Estates),
Room 43,
Building 182,
RAF Innsworth,
Gloucester, GL3 1HW.