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HMRC internal manual

Employment Income Manual

From
HM Revenue & Customs
Updated
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War pensions: the Civilians Scheme

The Personal Injuries (Civilians) Scheme 1983

The war pensions schemes are administered by the Veterans Agency, which is part of the Ministry of Defence. The schemes are separate from the Social Security system.

The Personal Injuries (Civilians) scheme 1983 (often referred to as the Civilians Scheme) covers civil defence volunteers and civilians who received war injuries during the 1939-1945 war and their dependants. Such payments are made in respect of-

  • war service injuries sustained by civil defence volunteers;
  • war injuries sustained by civilians who were ‘gainfully occupied persons’ (a ‘gainfully occupied person’ is a person who is engaged in any trade, business, profession, office, employment or vocation and is wholly or substantially dependent thereon for a livelihood, or a person who, though temporarily unemployed, is normally so engaged and dependent);
  • war injuries sustained by civilians who were ‘non-gainfully occupied persons’, for example, housewives, pensioners, annuitants and persons who live on unearned incomes.

Awards may be made in favour of -

(a) civil defence volunteers sustaining war service injuries;

(b) ‘gainfully occupied persons’ sustaining war injuries;

(c) ‘non-gainfully occupied persons’ sustaining war injuries;

(d) a person between the age of fifteen and twenty-four who was, before injury, receiving full-time instruction at an educational establishment, or who was learning a profession, trade, etc.;

(e) widows, dependent children, parents, brothers and sisters of anyone in categories (a) and (b) who died as a result of injuries;

(f) widows or dependent children of anyone in category (c) who died as a result of injuries.

Payments made to anyone in (a) to (d) above are regarded as compensation for injury and not as income and therefore not chargeable to income tax. Payments made to anyone in (e) or (f) above are, for 1979-80 onwards, exempt from tax.