Written Question·Treasury·UIN 117442
Compensation: Income Tax and Inheritance Tax
Tabled: 3 March 2026
Answered: 11 March 2026
Question
Matt Vickers
Conservative — Stockton West
To ask the Chancellor of the Exchequer, what criteria the Government uses to determine whether payments made under a Government compensation scheme are exempt from (a) income tax and (b) inheritance tax.
Answer
Dan TomlinsonSome payments made under Government established compensation schemes will not give rise to an income tax liability. This is because payments intended to compensate individuals for personal injury would generally fall within established tax principles that...
ⓘ
This is an extract from the Parliament API. Search the full answer on Parliament.uk (UIN 117442) →