Inheritance Tax and Infected Blood compensation payments

Where a person eligible for compensation under the Infected Blood Compensation Scheme and or Infected Blood Interim Compensation Scheme has already died at the time of payment, the first living recipient of that payment will be able to pass on the value of the compensation following their own death without an Inheritance Tax charge.

This measure also allows victims’ beneficiaries to redirect the inheritance of payments made under the above schemes through a deed of variation within two years of the date of payment. This will be treated for Inheritance Tax purposes as though it had been the position at the date of the victim’s death.