Budget 25: Chancellor Eliminates Infected Blood Scandal Inheritance Tax Charge
The Chancellor delivered a significant announcement during the Autumn Budget 2025 speech in Parliament. She revealed that compensation payments related to the infected blood scandal will be exempt from inheritance tax (IHT). This decision aims to relieve the financial burden on families receiving these payments.
Details of the Announcement
The Chancellor stated that the exemption will apply “regardless of the circumstances in which those payments are passed down.” This move comes in the wake of a scandal that profoundly affected many lives.
Funding for Compensation
With over 30,000 individuals infected with HIV and Hepatitis C from contaminated blood products in the 1970s, the Chancellor emphasized the need for proper funding. She criticized the previous Conservative administration for not adequately budgeting for these compensation payments.
- Number of Infected Individuals: Over 30,000
- Conditions Affected: HIV and Hepatitis C
- Decade of Contamination: 1970s
Reeves highlighted, “That is how we should be spending taxpayers’ money,” reaffirming a commitment to support those impacted by the scandal. This policy change represents a pivotal step in addressing the injustices faced by victims and their families.
Impact of the Policy Change
The exemption of IHT for these compensation payments is expected to provide significant relief. Families can now focus on healing without the added stress of potential tax liabilities.
This decision by the Chancellor marks a crucial development in unresolved issues stemming from the infected blood scandal. It reflects a broader commitment to make amends and support affected families moving forward.
