Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what plans she has to amend inheritance tax legislation to ensure that compensation paid to the estates of deceased victims of the Infected Blood scandal is exempt from inheritance tax.

At Budget 2025, the government announced that it would extend the existing relief from inheritance tax for compensation payments made from the Infected Blood Compensation Scheme and the Infected Blood Interim Compensation Payment Scheme (‘infected blood compensation payments’). A Tax Information and Impact Note has been published and can be found here: Inheritance Tax and Infected Blood compensation payments - GOV.UK.

Finance Bill 2025-26 contains a power to make changes to the inheritance tax treatment of infected blood compensation schemes in secondary legislation. The government will lay regulations subject to parliamentary approval of the Bill. More information about what this means in practical terms and what action impacted individuals should take ahead of regulations being made were published in this Written Ministerial Statement: Inheritance tax relief for infected blood compensation payments