Taxation of Chargeable Gains Act 1992 section 268

Decorations for valour or gallant conduct

Section 268 provides an exemption from capital gains tax for disposals of decorations awarded for valour or gallant conduct, provided the person disposing of them did not originally acquire them by purchase.

• Any gain arising on the disposal of a decoration awarded for valour or gallant conduct is exempt from capital gains tax.
• The exemption applies only where the person disposing of the decoration did not acquire it for consideration in money or money's worth — for example, they received it as an original award or as a gift or inheritance.
• If someone purchased the decoration (i.e. acquired it for monetary consideration), any gain on a subsequent disposal would be chargeable in the normal way.
• The exemption covers all types of decorations for valour or gallant conduct, whether military or civilian, and applies regardless of who makes the disposal, provided the acquisition condition is met.