---

Income tax exemption for payments made under the LGBT Financial Recognition Scheme

My honourable friend the Exchequer Secretary to the Treasury (James Murray) has made the following Written Ministerial Statement.

Today, the Government has confirmed ex-gratia payments made under the LGBT Financial Recognition Scheme will be exempt from income tax. The scheme is designed to offer financial recognition to those who served under, and suffered from, the ban on LGBT personnel serving in HM Armed Forces between 1967-2000.

This decision to grant an income tax exemption ensures that applicants receive the full payment amount, marking an important step toward addressing the historic wrongs faced by LGBT personnel and veterans in the past.

The Government will legislate via secondary legislation to formalise this tax exemption in due course.