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Volume 403: debated on Tuesday 8 April 2003

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To ask the Secretary of State for Defence what representations he has received on interest payable on tax incorrectly deducted from armed forces pensions; and if he will make a statement. [107744]

The Ministry of Defence has received representations from two ex-Service organisations, the Forces Pension Society and the Royal British Legion, and a small number of individuals affected. Those pensioners who have been found to have paid tax incorrectly have received from the Inland Revenue a refund of tax, and, in appropriate cases, the statutory repayment supplement. Officials are currently considering whether there is a case for any further payment to be made to compensate for the consequences of the error, and I would expect this work to be completed by the summer.