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HMRC internal manual

Inheritance Tax Manual

Compensation payments: compensation for industrial injuries to coal miners

Under a scheme set up in 1999, coal miners can claim compensation for industrial injury whilst working in the mines. The ailments covered by the scheme are lung disorders, industrial deafness and vibration white finger. Most claims will be made by the estates of coal miners who died many years ago. The right to claim will have no value at the date of death. We have agreed a simplified procedure for obtaining a grant in such estates with the Court Service (IHTM05029).

The right to claim against the National Coal Board/British Coal came about as the result of a Court case. Judgement was given on 23 January 1998. Where a miner has died before that date, the likelihood of succeeding with a claim was speculative and you can accept that the right to make a claim has no value.

Where a miner has died after that date and has either made a claim, but not received payment, or a claim is made on his behalf by his executors, a discounted value should be included that reflects

  • the likely success of the claim,
  • the maximum amount payable for each type of industrial injury
  • and whether any delay is likely before the compensation will be received.

You should refer the case to Technical to consider the value offered.

Where a miner dies having received their compensation, it is liable to IHT in the usual way.