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HMRC internal manual

Inheritance Tax Manual

Compensation for wrongs suffered during World War II: payments to slave or forced labourers or other victims of the German Nationalist Socialist (Nazi) regime

There are a number of schemes under which compensation is paid to claimants who suffered at the hands of the Nazi regime during World War II. Normally, the payment, or the value of the right to make the claim, would form part of the deceased’s chargeable estate.However, under Extra Statutory Concession F20 (ESCF20) where the payment has been made, or the personal representatives include a value for the right to make a claim, the payment/value for the right is to be left out account for IHT purposes.

The ESC applies whether or not the money can actually be traced in the deceased’s assets and irrespective of when the money is received. If the payment is made, the estate is entitled to the deduction.

ESC F20 covers specifically payments made from the German public law foundation Remembrance, Responsibility and Future’. Those who suffered are entitled to claim, or where the person has already died, the surviving spouse is entitled to claim. The payments vary, but are usually of modest round-sum amounts. As the ESC only refers to payments made under the German foundation, you should refer any case where the taxpayer requests similar treatment for a payment made under any other scheme to Litigation.

The instruction at IHTM04423 tells you how to apply the relief.