§ Mrs. LaitTo ask the Chancellor of the Exchequer if the compensation to former Japanese internees will be included in their estate for the purposes of calculating inheritance tax. [146488]
§ Dawn PrimaroloI am today announcing an Extra Statutory Concession which will protect these awards from IHT. In strict law, the compensation as such would not form part of a person's estate unless they die before the claim is paid out. Once they have received their compensation in cash, what shows up in their estate for IHT purposes would obviously depend on whether they choose to save it. In the very exceptional circumstances of these cases, however, we think that claimants should be able to decide that without concern for the IHT consequences. We will therefore be allowing an extra£10,000 relief from inheritance tax for every eligible claimant, whether or not they have yet received it, and whatever they choose to do with it subsequently.