Copyright dailymail
Lawyers representing families of the infected blood scandal victims have demanded urgent action from the Chancellor to avoid them losing hundreds of thousands of pounds in tax. Families bereaved by what has been dubbed ‘the worst treatment disaster in the history of the NHS’ have fought for years for justice after their loved ones were infected by contaminated blood after routine treatment. After a long battle beset with public authority cover-ups on a grand scale, the government finally agreed to set aside £11.8bn for the victims and their families last year with many due to receive payments of up to £1m. But, with only £1.2 billion paid so far in interim compensation payments, a Treasury kick in the teeth could see families face hefty charges of up to 40% because of Rachel Reeves’ new inheritance tax rules. More than 30,000 people were infected with HIV and hepatitis C after being given contaminated blood and blood products between the 1970s and early 1990s in the UK. More than 3000 have since died as a result with survivors left with lifelong health problems. While the compensation scheme was supposed to be tax free, the long wait for justice meant many died before receiving the payout and many victims are now elderly so almost half of their payments could be clawed back by the Treasury in inheritance tax Their lawyers have now written to Rachel Reeves insisting they must exempt their compensation payments from inheritance tax in next month’s budget. One campaigner described it as ‘an injustice that must not be allowed to stand’. In a letter to Ms Reeves, professional bodies Step and The Association of Lifetime Lawyers called for urgent action to end this inheritance tax issue which ‘unfairly punishes’ families. Jade Gani from The Association of Lifetime Lawyers said it was ‘completely morally wrong’, explaining: ‘Victims and their families have already endured decades of pain and delay; it is an outrage that a technical flaw will allow the Government to claw back up to 40 per cent of the compensation that was specifically intended to provide some redress. ‘Families should not be further penalised due to delays outside their control. This is about preventing bereaved families from being actively punished by a tax system that, in effect, rewards the Government for delays.’ The Treasury confirmed today that it was now ‘considering the issue’ and would make a decision at the budget on November 26, Radio 4 Today programme has reported. This Thursday, as applications for further interim payments for the victims’ families opened, MPs from all parties also heavily criticised the government for taking too long to compensate victims. Sir Brian Langstaff, chairman of the infected blood inquiry, has previously called for ‘faster and fairer’ compensation for victims. In July, the Infected Blood Inquiry made a series of recommendations to improve compensation. The Government responded that it was immediately accepting a number of the recommendations and would consult on others. Inheritance tax is charged at 40pc on the portion of a deceased person’s estate worth more than £325,000. Homeowners leaving their main property to their children or grandchildren benefit from an extra £175,000 allowance, so couples can usually leave behind £1m tax-free.
