Inheritance Tax Act 1984 section 154

Death on active service, etc.

Section 154 provides complete inheritance tax relief where a member of the armed forces or a civilian subject to service discipline dies as a result of active service, warlike service, or responding to emergency circumstances.

• The relief exempts the death estate from inheritance tax, prevents potentially exempt transfers from becoming chargeable on death, and removes additional tax on lifetime transfers made within seven years of death.
• The relief applies where a valid certificate is issued by the Defence Council or the Secretary of State confirming that the death resulted from a wound, accident, or disease sustained or aggravated during qualifying service.
• Qualifying service includes active service against an enemy, other service of a warlike nature (or involving equivalent risks), or responding to emergency circumstances in the course of duties.
• The person must have been a member of the armed forces of the Crown or a civilian subject to service discipline within the meaning of the Armed Forces Act 2006, with historical provisions extending coverage to women's services before 28 July 1981.