keep The Infected Blood Compensation Scheme (Tax Exemptions and Relief) Regulations 2024
These Regulations designate Infected Blood Compensation Scheme payments as 'qualifying payments' for tax exemption purposes under Schedule 15 of the Finance Act 2020. They provide that compensation payments from the Infected Blood Compensation Authority (established under the Victims and Prisoners Act 2024) are exempt from inheritance tax (para 3), capital gains tax (para 4), and income tax (para 5) where payments are received, disposals made, or deaths occur on or after 23rd August 2024.
Deleting this regulation would subject genuine compensation payments to victims of the infected blood scandal to taxation, effectively reducing their compensation. While the free market principle generally opposes targeted tax reliefs, this regulation corrects a specific injustice without distorting market incentives or creating regulatory barriers to entry. The compensation addresses a documented historical harm where victims contracted HIV/hepatitis C through NHS blood products. Removing these exemptions would make Britons worse off by taxing victims twice for harm inflicted upon them by the state medical system.