STEP and The Association of Lifetime Lawyers are looking into HMRC’s position on IHT in respect of compensation payments made to impacted parties & estates, as a result of the Infected Blood Scandal.
Whilst the Scheme handling the compensation have confirmed no IHT will be due on the compensation payments, any estate planning thereafter might have considerable tax consequences given that many of the deaths occurred well outside of the 2-year period (some are over 30 years ago) for s. 142(1) IHTA to apply.
We are interested to know if members are dealing with any such cases and, if so, whether they would be happy to provide details of those real-life examples.
Please feel free to email me at ben.bell@step.org
Thank you.