On 21 August 1860 at the Taku Forts, China, during the Second China War, Lane, then aged 24 and a private in the 67th (South Hampshire) Regiment of Foot (later The Royal Hampshire Regiment), British Army and a Lieutenant Nathaniel Burslem of his regiment were awarded the Victoria Cross: For distinguished gallantry in swimming the Ditches of the North Taku Fort, and persevering in attempting during the assault, and before the entrance of the Fort had been effected by any one, to enlarge an opening in the Wall, through which they eventually entered, and, in doing so, were both severely wounded.

His VC gratuity was paid from the consulate in Boston, United States, and also in Auckland, New Zealand, during the 1870s.

He was stripped of the medal on 7 April 1881 after being convicted of desertion on active service and theft of a "horse, arms and accoutrements".

The eight recipients who forfeited their awards have always been included on official War Office lists of VC holders but with a note at the end of the alphabetical list of recipients prior to the First World War stating the names and dates of the warrants that cancelled their awards.

However, Lane had entrusted his VC to a friend, so the South Africans made a copy and sent that to the War Office.