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Soldiers' families could be exempt from inheritance tax

29 May 2008

The families of injured members of the armed forces are being advised to keep all medical records as they could be exempt from inheritance tax, the Observer has reported.

Beneficiaries of people in their 80s and older who died from a condition relating to active service in the Second World War are eligible for the exemption.

Many families may not be aware of the rules.

Someone who is blown up by a mine is clearly covered by this exemption but it also covers the long-term effects decades later of some injury or disease someone may have suffered connected with their military service which is then linked to whatever it is that kills them.

Doctors, nurses and war correspondents may also be eligible for the exemption and there is no time limit as long as it can be shown that the injury or disease shortened the person's life.

After someone's death and once the cause is known, claims must be made to the Ministry of Defence.

Gathering evidence and information from doctors and specialists is recommended to be done in advance and current military personnel are being urged to keep their medical records in case they are needed for a future claim.

William Chalk, associate in the private client practice, comments: "This is a valuable exemption that may be missed if practitioners are not aware of it.

"The wound or disease sustained on active service simply has to have contributed to the death and does not have to be the direct cause of death.

"Where the exemption was not claimed in the past, it may be possible to retrospectively claim the exemption and refund of inheritance tax, providing medical reports support the claim."

During the Second World War 326,000 members of Britain's armed forces were killed.