Commons Sense

House of Commons · Written Ministerial Statement

Clarification of the tax treatment of interim infected blood compensation payments and of the Jobs Growth Plus scheme introduced by the Welsh Government

11 October 2022 · Treasury

Proposed by Richard Fuller Con North Bedfordshire

TaxationWales

Summarised by AI from the official record, so it can contain mistakes.

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At a glance

Key points

  • The Government will not charge income, capital gains, National Insurance contributions, or inheritance taxes on interim infected blood compensation payments.
  • The Government will legislate to exempt interim infected blood compensation payments from taxes in due course.
  • The Government will ensure similar tax exemptions for the Welsh Government's Jobs Growth Plus scheme from April 2022.

Issue summary

The statement addresses the tax treatment of interim compensation payments for individuals affected by infected blood and the Welsh Government's Jobs Growth Plus scheme.

Action requested

The Government is announcing that no income, capital gains, National Insurance contributions, or inheritance taxes will be charged on interim infected blood compensation payments. It will also legislate to exempt these payments in due course and ensure similar tax exemptions for the Jobs Growth Plus scheme from April 2022.

Key facts

  • Interim compensation payment of £100,000 for registered individuals and bereaved partners.
  • Payments will not be included as income for tax credit purposes.
  • Tax exemption legislation to be introduced in due course.
  • HMRC will exercise discretion not to collect any tax on these payments until the legislation is passed.
  • Jobs Growth Plus scheme payments exempt from income tax from 1 April 2022.
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