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HMRC internal manual

Inheritance Tax Manual

Compensation payments: compensation for personal injuries on death

Whether or not sums received by the estate for personal injuries should be brought into account depends on the nature of the payment received.

The following are taxable

  • (IHTM10264) Payments under the Law Reform (Miscellaneous Provisions) Act 1934

The following are not taxable

  • (IHTM10265) Compensation under the Fatal Accidents and National Insurance (Industrial Injuries) Acts
  • (IHTM10266) Ex gratia payments for Tort committed by a member of the Armed Forces of the Crown or the United States’ Forces
  • (IHTM10267) Ex gratia compensation payments made by the Criminal Injuries Compensation Board


Special rules apply to sums received under the Damages (Scotland) Act 1976 (IHTM10268)