Currently, Extra Statutory Concession F20 allows an exemption from IHT in respect of certain compensation and ex gratia payments made for wrongs suffered during World War II.
As already announced in the Autumn statement in 2015, the government will legislate ESCF20 and will also extend the legislation to include a payment made under a recently created compensation scheme known as the Child Survivor Fund.
Following consultation, the legislation has been amended to extend the power for the Treasury to add additional payments from particular schemes so that it includes prisoners of war and civil internees, as well as victims of National Socialist persecution.
The amended legislation will apply to deaths occurring on or after 1 January 2015.
The transfer of ESCF20 into legislation will ensure that ex-gratia or compensation payments from certain listed schemes, or rights to such compensation, are not subject to IHT, whether the payment is made to the claimant before their death or later to their Personal Representatives