Overseas Service Disability Pension

Can you please advise if I need to declare via Self Assessment, as a UK resident, a small veterans disability pension from the Australian Government? It is paid tax free in Australia 'to compensate veterans for conditions (i.e. injuries or diseases) caused or aggravated by war service or certain defence service on behalf of Australia.' I believe there is a similar UK pension that is tax free so I am assuming one from Australia is too.

Hi George1966,

Please refer to Disability pension payments Section 641 ITEPA 2003 to see if your pension falls into these categories

Thank you.

Hello Again. I believe it would fall into this section as it states Crown service which I assume also covers the Australian Army as it is the same Monarch and service in the Australian Army is considered Crown service in Australia. Thanks.

Hi,
On the basis of the information provided, your Overseas Service Disability Pension falls into the non-taxable category and therefore does not have to be declared in a Self Assessment tax return.
Thank you.

Can I please check does a UK Armed forces, service attributal pension which is non taxable due to injuries sustained in service, is this included as income regarding child tax credits.

Hi Pink105 Pink,
To work out if your income is over the threshold for child benefit, you'll need to work out your 'adjusted net income'.
Your adjusted net income is your total 'taxable income' before any allowances.
As your armed forces pension, in respect of injuries sustained in service, is not taxable; it should not be included when calculating your adjusted net income.
Please have a look here:
High Income Child Benefit Charge
And what counts as income here
Income Tax: introduction
Thank you.