Payments, benefits and services provided as a result of disablement

Updated on 20 April 2019

Armed forces

This section examines the tax status of some of the payments, benefits and services that might be provided to you as a result of disablement arising from your service. It directs you towards further information.

I was injured in service and have spent a significant time in hospital and rehabilitation. Do I pay tax on the cost of any of these services?

No. All such treatment in National Health Service (NHS) or Ministry of Defence (MoD) facilities in relation to such injury or rehabilitation is provided free of charge and is tax-free.

Back to the top

I was injured overseas and returned to the UK for treatment. What about the costs of bringing me home?

Again all such travel expenses are provided free of charge and are tax-free, for you and for any family travel arranged by MoD. That includes any travel from the UK by your family when you were seriously ill.

Back to the top

I received a payment under the Armed Forces Compensation Scheme (AFCS). Is it taxable?

No. Whether this is a lump sum payment or a monthly Guaranteed Income Payment (GIP) for life, both are tax free. This is also the case for payments received under the War Pension Scheme. Further details on such payments may be obtained from Veterans UK.

Back to the top

What is the tax status of other payments I might receive?

There are a number of other benefits that might be paid:

  • Armed Forces Independence Payment
  • Disability Living Allowance
  • Personal Independence Payment
  • Attendance Allowance
  • Constant Attendance Allowance
  • Employment & Support Allowance
  • An award under the Criminal Injuries Compensation (Overseas) Scheme
  • A grant under the Access to Work scheme

You can check the tax status of all of these payments and the effect that receiving them has on any other benefits in our section on tax credits and benefits.

Back to the top

Where can I find further information?

The Joint Casualty and Compassionate Centre provides assistance in the case of injury.

GOV.UK gives information on how health care is organised.

The Criminal Injuries Compensation (Overseas) Scheme provides financial support to members of the armed forces and their accompanying dependants who are the victims of a violent crime while serving overseas.

Our section on tax credits and benefits provides further information on benefits that might be claimed.

Back to the top