A coin marking the 200th anniversary of the Battle of Trafalgar will financially support a planned armed forces' memorial in Staffordshire.
The design of the new memorial at Alrewas
The National Memorial Arboretum at Alrewas, near Lichfield, should get £1.5m from the proceeds of the coin.
Chancellor Gordon Brown has unveiled details of National Veterans Day, to be celebrated on 27 June each year.
There will be several measures to ensure the armed forces' contribution to national life is "never forgotten".
A national archive of audio and video records of veterans' memories will also be compiled, with young people encouraged to gather the raw material.
The date for the annual veterans day is believed to relate to the 150th anniversary of the Victoria Cross.
Mr Brown said in a speech on Monday: "The Treasury will allocate £1.5m from the proceeds from the coin celebrating the 200th anniversary of the Battle of Trafalgar to help fund the memorial in Staffordshire for the men and women in our armed forces who have given their lives.
"The national Veterans' Day is designed to thank today's generation of ex-servicemen and women for their service to our country.
"I propose ceremonies in every constituency and locality of the country to mark national Veterans' Day - where we present veterans with veterans medals at local ceremonies and we will consult with veterans' groups in taking this forward."