§ Mrs. LawrenceTo ask the Chancellor of the Exchequer what will be the tax treatment of moneys paid out by UK banks under the British Bankers Association Restore UK initiative in respect of bank accounts opened by Holocaust victims, frozen during World War II under the Trading With the Enemy Act and subsequently held as dormant accounts. [121457]
§ Dawn PrimaroloThe Government very much support the British Bankers Association "Restore UK" initiative.
It is right that people who were Holocaust victims, or their beneficiaries, who have moneys restored to them under this scheme, should receive not only the original capital but some form of compensation.
I am glad to announce that no tax will be payable on any moneys paid out by the banks under this initiative to Holocaust victims or their beneficiaries. This exemption will cover income tax liability on any compensation payments as well as any death duties in respect of the capital held in the accounts.