Halliday was 30 years old, and a captain in the Royal Marine Light Infantry, during the Boxer Rebellion in China when the following deed took place for which he was awarded the VC.

His citation reads: Captain (now Brevet Major) Lewis Stratford Tollemache Halliday, Royal Marine Light Infantry On the 24th June, 1900, the enemy, consisting of Boxers and Imperial troops, made a fierce attack on the west wall of the British Legation, setting fire to the West Gate of the south stable quarters, and taking cover in the buildings which adjoined the wall.

A hole was made in the Legation Wall, and Captain Halliday, in command of twenty Marines, led the way into the buildings and almost immediately engaged a party of the enemy.

He was promoted to brevet major for his part in the legation's defence, and returned to the United Kingdom to receive the VC from King Edward VII during an investiture at Marlborough House on 25 July 1901.

He served as ADC to King George V in 1924 and 1925, and he held the post of Adjutant-General Royal Marines from December 1927 until his voluntary retirement in June 1930.