News story

Inheritance Tax Exemption for WWII Victims extended

Financial Secretary extends the list of schemes that are exempt from inheritance tax including Child Survivor Fund for victims of Holocaust

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Compensation payments from the Child Survivor Fund for victims of the Holocaust will be added to the current list of schemes exempt from inheritance tax, the Financial Secretary to the Treasury David Gauke confirmed today.

Payments from nine compensation and ex-gratia schemes for survivors of atrocities during World War II have been exempt from inheritance tax on a concessionary basis for several years.

The Child Survivor Fund (a German scheme) was launched earlier this year and provides a one-off payment of €2,500 as compensation for the suffering of Holocaust survivors.

Financial Secretary to the Treasury David Gauke said:

Many people faced appalling persecution during WWII. I’m glad we’ve been able extend the inheritance tax exemption even further to include a one off compensation payment for victims who endured this unimaginable trauma in their childhood.

Association of Jewish Refugees trustee, David Rothenberg, said:

This wonderful news will be of great comfort to those of our members who will receive an award from this historic programme.

The draft Finance Bill 2016, published on 9 December, included draft legislation that will put the existing concession into law and extend the exemption to include the Child Survivor Fund.

 Notes to editors:

9 compensation and ex-gratia payment schemes are already covered by the existing concession. These are:

  • A payment of a fixed amount from the German foundation known as “Remembrance, Responsibility and Future” (Stiftung EVZ) in respect of a person who was a slave or forced labourer.
  • A payment of a fixed amount in accordance with the arrangements made under the Swiss Bank Settlement (Holocaust Victim Assets Litigation) in respect of the slave or forced labourers qualifying for compensation under the Remembrance, Responsibility and Future scheme.
  • A payment of a fixed amount from the Hardship Fund established by the Government of the Federal Republic of Germany.
  • A payment of a fixed amount from the National Fund of the Republic of Austria for Victims of National-Socialism under the terms of the scheme as at June 1995.
  • A payment of a fixed amount in respect of a slave or forced labourer from the Austrian Reconciliation Fund.
  • A payment of a fixed amount by the Swiss Refugee Programme in accordance with the arrangements made under the Swiss Bank Settlement (Holocaust Victim Assets Litigation) in respect of refugees.
  • A payment of a fixed amount under the foundation established in the Netherlands and known as the Dutch Maror Fund (Stichting MarorGelden Overheid).
  • A one-off payment of a fixed amount from the scheme established by the Government of the French Republic and known as the French Orphan Scheme.
  • A payment of a fixed amount made from the scheme established by the United Kingdom Government and known as the Far Eastern Prisoners of War Ex Gratia Scheme.

See here for more information on the Child Survivor Fund

Published 18 December 2015