I am grateful to both of them for their helpful submissions. It is convenient to start by considering in general terms the status of a service invaliding pension. There is, in effect, one Armed Forces Pension Scheme but the legal basis for the scheme is complicated by the fact that it depends upon prerogative instruments made under various statutes covering the different services. For the Royal Navy and the Royal Marines, the prerogative instrument is an Order in Council made under section 3 of the Naval and Marine Pay and Pensions Act 1865. For the Army it is a Royal Warrant made under section 2 of the Pension and Yeomanry Pay Act 1884.
Separate provision is made for reserve forces.
Disablement pensions and gratuities under the 1983 Order are administered by the War Pensions Agency and are entirely separate from service invaliding pensions. In the present case, the facts are not in dispute and all the material evidence was before the tribunal. The claimant was discharged from the Royal Air Force on 6 February 1975 on medical grounds and, as he had completed sufficient qualifying service, he was awarded a service invaliding pension from 7 February 1975. He was told that it was taxable and that deductions would be made at source. You should retain this letter for production, if necessary, to the Inland Revenue.