The UK government has announced that 'recognition' payments of £87,500 being made to the spouses of those who lost their lives during service in order to compensate them for the loss of entitlement to war widows/widowers pension on remarriage, will be exempt from Income Tax and National Insurance Contributions (NICs).
The written statement to the House of Lords by Victoria Atkins, the Financial Secretary to the Treasury, follows a government decision in May to change the rules.
Payments of £87,500 will now be available to those who lost entitlement to their war widow(er)’s Pension when, for example, they remarried, divorced or were bereaved under rules that were in place up to 2015.
As part of the principle of the Armed Forces Covenant, the £87,500 payments will be made by the end of 2023 and will be exempt from Income Tax and National Insurance Contributions (NICs).
"This payment is not intended to put a value on the widow(er)’s loss, but instead be an amount that clearly recognises that remarriage or cohabiting with a new partner does not erase the bereavement, as the Government is deeply conscious of the sacrifice these bereaved people have made," said Ms Atkins.
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External link
Statement by Victoria Atkins, the Financial Secretary to the Treasury
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