Labour has ditched plans to hit the grieving children of military personnel with a tax on their bereavement payments.
In October Rachel Reeves announced plans to make relatives in receipt of off-duty death-in-service payments, other than spouses or civil partners, pay inheritance tax from April 2027.
This means children and unmarried partners of soldiers who died from illness while off-duty, would have been subject to a tax on their payments.
But the Chancellor was forced to back down from her Budget announcement after mounting pressure from members of the Armed Forces, who called it a 'corrosive' plan.
The Government confirmed to The Daily Telegraph that after a consultation with Armed Forces organisations it had decided to withdraw the proposals.
