A NORTH Yorkshire war veteran who claims the Ministry of Defence has wrongly taxed his disablement pension for four decades is still battling for his cash despite a recent victory for hundreds of others.

Major Richard Leigh Perkins, 86, of Lastingham, who fought in Burma with the Royal Leicestershire Regiment, was discharged from the army in 1959 after he suffered a mental breakdown.

The MoD admitted that it has wrongly taxed hundreds of armed forces personnel who were disabled during service and had to leave, and announced that the veterans will share £14m compensation.

But because of an error made by the MoD in 1959 when he was discharged, Major Perkins has not seen a penny of the tens of thousands of pounds in tax rebate and compensation he claims he is owed, and his pension is still being taxed.

The battle began in 1998 when the MoD admitted it had wrongly taxed disabled war veterans after Major John Perry of Hertfordshire discovered the scandal. The MoD sent out letters to more than 1,000 disabled war veterans notifying them that they may be eligible for tax rebates. Two months after the first letter Major Perkins received a second to say he was not eligible.

In 2001 Major Perkins took his case to the Pensions Appeal Tribunal which ruled that his retirement in 1959 was due to disablement attributable to military service.

But the MoD then referred the case to the Inland Revenue which ruled that he was only entitled to two years' back payments.

Despite the tribunal ruling, the MoD assessed Major Perkins for present disabilities and found him to have none so told him he must start paying tax again.

Ryedale MP John Greenway has demanded justice for Major Perkins and taken his case to the top - Ivor Caplin, under secretary of state for defence and minister for veterans.

"The current assessment in 2000 of disability at nil per cent is totally irrelevant. We are not arguing about Major Perkins' disability now. We are arguing about the failure to treat his pension correctly in 1959.

"Had the matter been correctly dealt with in 1959, his pension would have been recognised as a disability pension on which he was entitled to tax exemption," Mr Greenway wrote in a letter to the Government minister.

Major Perkins has been advised by tax experts, supported by the Forces Pension Society, about an appeal to the Special Commissioners of the Inland Revenue.

"I'm an elderly war veteran now in my sixth year of a campaign fighting for a 42-year tax rebate fully authorised in statute law. I have just suffered a new outrage from the MoD by having income tax unlawfully deducted from my retirement pension two weeks before Christmas," said Major Perkins.

"The MoD's unusual Christmas present seems a strange way for this country to express its appreciation for those who have served Britain in peace and war."

A spokesman for the MoD said: "The MoD has already accepted responsibility for the error and has apologised unreservedly. Refunds of tax and underpaid benefits have already been paid to all pensioners affected.

"Compensation will be paid to pensioners who were incorrectly taxed more than six years ago to fully compensate them for the delay. I cannot comment on individual cases."

Updated: 10:49 Wednesday, January 07, 2004