Inheritance Tax and Infected Blood compensation payments
This measure extends the existing Inheritance Tax relief for Infected Blood compensation payments, if the eligible infected or affected person has already died when compensation is paid.
If an infected or affected person eligible for compensation under the Infected Blood Compensation Scheme and/or Infected Blood Interim Compensation Payment Scheme has already died at the time of payment, the estate of the first living recipient(s) of that payment will receive an Inheritance Tax credit to pass on the value of the compensation following their own death without an Inheritance Tax charge.
The first living recipient(s) will also have two years in which to pass on some or all of the compensation payment they receive without any Inheritance Tax becoming due. Any qualifying amount gifted will retain an equivalent Inheritance Tax credit.
These changes will apply regardless of whether the person originally eligible for compensation was an infected person or an affected person.