SE76103 - Social Security benefits: war widow's pension

Section 318(1) and (2) ICTA 1988

Exemption of War Widow’s pension

A war widow's pension is not taxable.

However this exemption does not just relate to war widows or to war-time deaths but also other dependants of a deceased member of HM Forces etc. can also qualify.

The exemption from tax applies to the following payments:

• any pension or allowance payable by or on behalf of the DSS under so much of any Order in Council, Royal Warrant, order or scheme as relates to death due to

• service in HM Forces
• war-time service in the merchant navy
• war injuries

• any pension or allowance payable at similar rates and subject to similar conditions as above which is paid by the Ministry of Defence in respect of death due to peace-time service in HM Forces before 3 September 1939.
• any pension or allowance which is payable under the law of a foreign country but is substantially the same as the payments described above.

Relationship between war widow’s pension and other Social Security benefits

Sometimes a pension or allowance is not paid or only a reduced amount is paid because the claimant gets a different benefit, for example, widowed mother's allowance ( SE76177) or widow's pension ( SE76178).

Where this happens the amount of that other benefit which equals the amount of pension above that would otherwise have been paid, is exempt from Income Tax.