Home » Army family “death-tax” raised in Senedd

Army family “death-tax” raised in Senedd

LAURA ANNE Jones MS, South Wales East Senedd Member and Shadow Minister for the Armed Forces, has spoken in the Senedd about UK Government plans to force grieving military families to pay tax on death-in-service payments.

Under new rules which will be effective from April 2027, those who die off-duty in the military – for instance through illness – will see their death-in-service payments subject to inheritance tax for the first time if they were not married or in a civil partnership at the time of their death.

That would reduce these payments, which are intended as compensation for families, by up to 40% through taxation.

Lisa Rawlings and Kelly Farr of Wales-based Female Veterans’ Alliance described the new rules as “a betrayal of the sacrifice they have made for their country.”

The chief executive of the Forces Pension Society has also called the change “corrosive”.

Speaking in the Senedd, Laura Anne Jones MS, Senedd Member for South Wales East and Shadow Minister for Housing, Local Government and the Armed Forces, said:

“First pensioners, then farmers, and now our armed forces.

 “It is completely unfair that Welsh military families will pay a death-tax, while people like Gerry Adams are lining up to receive compensation.”

Outside the Senedd Chamber, Jones added:

“This is nothing but a death-tax on our armed forces who have given up their own safety so we can sleep soundly at night.

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 “There are many military families in Monmouthshire and across South Wales East who will be very concerned about these changes.”

Lisa Rawlings and Kelly Farr of Wales-based Female Veterans’ Alliance, said:

“We strongly oppose the appalling idea of forcing grieving military families to pay inheritance tax. These families have already paid the ultimate price—the loss of a loved one who served their country with courage and dedication. To then penalise them financially is nothing short of disgraceful. Our military personnel risk their lives to protect our freedoms, and this is how their families are repaid? It’s a betrayal of the sacrifice they have made for their country.

“These families deserve respect, dignity, and financial protection—not to be burdened with an unjust tax at the most vulnerable time of their lives.”

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