Inheritance tax waived for Kindertransport compensation payments

The government plans to relax the inheritance tax rules for Kindertransport compensation payments so that affected taxpayers will not be liable for tax on any amounts received from the fund

The legislation will be included in Finance Bill 2019-20 and was announced in response to the announcement by the German government that it would set up a compensation scheme for Kindertransport survivors who were rescued from Germany on the Kindertransport from 1938 in the run-up to the Second World War. The rescue missions saved almost 10,000 children.

Under the previous rules, these payments would have been treated as part of the individual’s estate and liable to inheritance tax.

In a written parliamentary statement by Jesse Norman, financial secretary to the Treasury, the Government has announced that it is proud to continue to support victims of Nazi persecution and will legislate in Finance Bill 2019-20 so that compensation payments made as part of this scheme will not be subject to inheritance tax considerations.

The Kindertransport Fund opened on 1 January 2019 and the application forms are now available by clicking here.

The fund is not only for children who were sent to Britain, but includes the unaccompanied Jewish children sent to Sweden, Switzerland, France, the US and Australia.

Kindertransport survivors who are eligible will receive a one-off payment of €2,500 - approximately £2,250. Even if they have previously received a compensation award, they will still be eligible for this payment and there is no income limit for applicants.

Applications must be submitted by survivors, not heirs. However, if an eligible survivor passes away after an application form is received and registered by the Claims Conference, the surviving spouse is entitled to payment.  If there is no surviving spouse, the child(ren) of the eligible child survivor is entitled to the payment.

Kindertransport Fund Application Form

Sara White

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