THE government’s planned military ‘death tax’ has been blasted in the Senedd by Laura Anne Jones MS.

Under new rules effective from April 2027, those who die off-duty in the military, such as through accident or illness, will see their death-in-service payments subject to inheritance tax for the first time, if they were not married or in a civil partnership at the time of their death.

The rules would reduce payments, which are intended as compensation for families, by up to 40 per cent through taxation.

Laura Anne Jones MS, Senedd Member for South Wales East, and Shadow Minister for Housing, Local Government, and the Armed Forces, said: “First pensioners, then farmers, and now our armed forces.

“It is completely unfair that Welsh military families will pay a death-tax, while people like Gerry Adams are lining up to receive compensation.”

The MS added: “This is nothing but a death-tax on our armed forces who have given up their own safety so we can sleep soundly at night.

“There are many military families in Monmouthshire and across South Wales East who will be very concerned about these changes.”

Wales has had impressive numbers in the military. In the last census (2021), around 115,000 people in Wales reported they had previously served in the armed forces. But these changes have also received significant criticism from veteran groups.

Lisa Rawlings and Kelly Farr, of Wales’ Female Veterans Alliance described the new rules as “a betrayal of the sacrifice they have made for their country”, while the Chief Executive of the Forces Pension Society called the change “corrosive”.

Lisa Rawlings and Kelly Farr, said: “We strongly oppose the appalling idea of forcing grieving military families to pay inheritance tax. These families have already paid the ultimate price, the loss of a loved one who served their country with courage and dedication. To then penalise them financially is nothing short of disgraceful. Our military personnel risk their lives to protect our freedoms, and this is how their families are repaid? It’s a betrayal of the sacrifice they have made for their country.

“These families deserve respect, dignity, and financial protection, not to be burdened with an unjust tax at the most vulnerable time of their lives.”

However, the Treasury confirmed that existing inheritance tax exemptions would continue for those who die from wounds, accidents or diseases contracted on active service.

A spokesperson said: "We value the immense sacrifice made by our brave Armed Forces, that is why existing inheritance tax exemptions will continue to apply, meaning that if a member of the Armed Forces dies from a wound inflicted, accident occurring or disease contracted on active service, they will be exempt.

"Any pension funds left to a spouse or civil partner in this scenario will also be exempt."

The policy change is part of the wider measures to inheritance tax announced by Chancellor of the Exchequer, Rachel Reeves, in the October budget. However, initial estimates suggest that based on current proposals, the Treasury would only be set to raise two million pounds from the change.