Military Medals Now Exempt from Inheritance Tax

Buried in the Chancellor’s 2014 Autumn Statement was a clause that ended a long campaign by members of the armed services and their families.

George Osborne righted a wrong by scrapping inheritance tax on military medals. Remarkably, and unfairly, the value of service awards had been included in a person’s wealth when they died.

The Victoria Cross, George Cross, Military Cross and some foreign decorations were exempted in 2000 because, bizarrely, families were being forced to sell the medals – some worth hundreds of thousands of pounds – just to pay the death duties on them.

The Government said the new measure applies to all decorations and medals awarded to the armed services or emergency service personnel (fire, police, ambulance and coastguard) and to awards, like OBEs and CBEs, made by the Crown for achievements and service in public life. But it does not apply to those bought or sold.

It also announced that emergency services, humanitarian aid workers and search and rescue teams will join armed services personnel in being exempt from inheritance tax if they are killed, or later die as a result of an injury sustained, in the line of duty.

Contact Heritage Will Writing on 02380 879243 for advice on Inheritance Tax.