The Lesbian Gay Bisexual and Transgender Financial Recognition Scheme (Income Tax Exemption) Regulations SI 2025/12 ensure that payments made by the Ministry of Defence to those who were wrongfully dismissed discharged or forced to resign because of the previous ban on lesbian gay bisexual and transgender people serving in the armed forces are ‘qualifying payments’ under FA 2020 Sch 15. This means that these payments are free of income tax. The Regulations come into force on 1 February 2025 and have effect in relation to qualifying payments received on or after that date.
According to the Scheme rules the DWP has also agreed that scheme payments will be disregarded for the purposes of the calculation of means-tested benefits.
The LGBT Financial Recognition scheme opened on 13 December 2024 and will accept applications until 12 December 2026.
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The Lesbian Gay Bisexual and Transgender Financial Recognition Scheme (Income Tax Exemption) Regulations SI 2025/12 ensure that payments made by the Ministry of Defence to those who were wrongfully dismissed discharged or forced to resign because of the previous ban on lesbian gay bisexual and transgender people serving in the armed forces are ‘qualifying payments’ under FA 2020 Sch 15. This means that these payments are free of income tax. The Regulations come into force on 1 February 2025 and have effect in relation to qualifying payments received on or after that date.
According to the Scheme rules the DWP has also agreed that scheme payments will be disregarded for the purposes of the calculation of means-tested benefits.
The LGBT Financial Recognition scheme opened on 13 December 2024 and will accept applications until 12 December 2026.
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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